# In the matter of Trans Globe Textiles Limited IB-46(ND)-2021

> NCLT judgment dated 2021-10-25. Citation: TCN-2021-NCLT-00702. The case involves an application filed by VA Realcon Private Limited, an operational creditor,…

- **Court:** NCLT
- **Order date:** 25 Oct 2021
- **Citation:** TCN-2021-NCLT-00702
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/trans-globe-textiles-limited-ib-46nd-2021-390237c1

## Summary

### Background

The case involves an application filed by VA Realcon Private Limited, an operational creditor, against Trans Globe Textiles Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The application pertains to an alleged default in payment of Rs. 1,13,65,200/- by the corporate debtor to the operational creditor for services provided.

## Facts

VA Realcon Private Limited (the operational creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Trans Globe Textiles Limited (the corporate debtor) for an alleged default of Rs. 1,13,65,200/-. The operational creditor claimed that the corporate debtor failed to pay for services rendered. Specifically, on December 12, 2019, the operational creditor sold 63,140 shares of India Stuffyarn Ltd. to the corporate debtor at Rs 180 per share, totaling Rs 1,13,65,200. The operational creditor raised a sale invoice on December 12, 2019. The corporate debtor confirmed the account transactions for the period April 1, 2019, to March 31, 2020, as of April 1, 2020, acknowledging the outstanding amount. Despite repeated contacts, the

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor, VA Realcon Private Limited, under …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court noted that the operational creditor had followed the procedure prescribed under

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI, NARENDER…
- **Appellants:** VA Realcon…
- **Respondents:** Trans Globe…

## Timeline

- **2019-12-12 — Sale of S…**: VA Realcon Private Limited sold 63,140 shares of India Stuffyarn Ltd. to Trans Globe…
- **2019-12-12 — Sale Invoice…**: VA Realcon Private Limited raised a sale invoice for Rs 1,13,65,200 to Trans Globe…

## 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)

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