Madura Coats Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Unitex Apparels Private Limited, the corporate debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The petition was based on the corporate debtor's alleged default of Rs. 1,04,34,644/-, which included the principal amount and interest, for goods supplied by the operational creditor. The corporate debtor admitted to the debt but claimed inability to pay due to financial difficulties. The NCLT considered the pleadings of both parties and the provisions of the IBC.
Madura Coats Private Limited (Operational Creditor) filed a petition against Unitex Apparels Private Limited (Corporate Debtor) under Section 9 of the IBC, 2016, for a default amount of Rs. 1,04,34,644/-. Madura Coats supplied cotton, synthetic, and core spun threads/yarns to Unitex Apparels, a company manufacturing readymade garments. Goods were supplied between 25.06.2016 and 21.08.2018 under invoices with a 90-day credit period. Unitex Apparels failed to make payments, resulting in the default. Unitex Apparels admitted the debt but claimed inability to pay due to financial difficulties since 2018, including losses in export business (Rs. 40.44 Crores) and pending recovery proceedings by SVC Co-op Bank Ltd. for Rs. 41,59,87,237/-. Unitex Apparels also stated that its
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Operational Creditor…
Operational Creditor…
Madura Coats Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Unitex Apparels Private Limited, the corporate debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The petition was based on the corporate debtor's alleged default of Rs. 1,04,34,644/-, which included the principal amount and interest, for goods supplied by the operational creditor. The corporate debtor admitted to the debt but claimed inability to pay due to financial difficulties. The NCLT considered the pleadings of both parties and the provisions of the IBC.
Madura Coats Private Limited (Operational Creditor) filed a petition against Unitex Apparels Private Limited (Corporate Debtor) under Section 9 of the IBC, 2016, for a default amount of Rs. 1,04,34,644/-. Madura Coats supplied cotton, synthetic, and core spun threads/yarns to Unitex Apparels, a company manufacturing readymade garments. Goods were supplied between 25.06.2016 and 21.08.2018 under invoices with a 90-day credit period. Unitex Apparels failed to make payments, resulting in the default. Unitex Apparels admitted the debt but claimed inability to pay due to financial difficulties since 2018, including losses in export business (Rs. 40.44 Crores) and pending recovery proceedings by SVC Co-op Bank Ltd. for Rs. 41,59,87,237/-. Unitex Apparels also stated that its
…Operational Creditor…
Operational Creditor…