# In the matter of Subburaj Cotspin Mills Private Limited

> NCLT judgment dated 2018-03-20. Citation: TCN-2018-NCLT-01680. The case involves an application filed by an Operational Creditor, Manjeet Cotton Pvt Ltd,…

- **Court:** NCLT
- **Order date:** 20 Mar 2018
- **Citation:** TCN-2018-NCLT-01680
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/subburaj-cotspin-mills-private-limited-a196e846

## Summary

### Background

The case involves an application filed by an Operational Creditor, Manjeet Cotton Pvt Ltd, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Subburaj Cotspin Mills Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted in making payments for the supply of cotton bales. The application seeks to admit the application, declare a moratorium, and appoint an Interim Resolution Professional (IRP).

## Facts

Manjeet Cotton Pvt Ltd, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Subburaj Cotspin Mills Private Limited, the Corporate Debtor. The Corporate Debtor had approached the Operational Creditor for the supply of cotton bales. The Operational Creditor supplied the cotton bales and raised invoices for the same. The Corporate Debtor made part payments but failed to pay the balance amount of Rs.79,92,341/-, including interest. The Operational Creditor issued a demand notice dated 05.07.2017 under Section 8(1) of the I&B Code, 2016, to the Corporate Debtor, but the Corporate Debtor did not reply. The Operational Creditor referred to the

…

## Issues and analysis

### Issue 1: Whether the Operational Creditor has fulfilled all the requirements of law for admission of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency

…

**Reasoning:** The Adjudicating Authority considered the documents submitted by the Operational

…

**Interpretation:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP

…

**Application:** In this case, the Operational Creditor provided evidence of the debt through

…

## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Manjeet Cotton…
- **Respondents:** Subburaj cotspin…

## Timeline

- **2017-07-05 — Demand Notice…**: The Operational Creditor issued a Demand Notice to the Corporate Debtor under Section…
- **2018-02-16 — Matter L…**: The matter was listed before the Adjudicating Authority, but there was no representation…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/subburaj-cotspin-mills-private-limited-a196e846