# In the matter of Valaya Clothing Pvt.  Ltd. IB-905-ND-2019

> NCLT judgment dated 2019-11-26. Citation: TCN-2019-NCLT-00459. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 26 Nov 2019
- **Citation:** TCN-2019-NCLT-00459
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/valaya-clothing-pvt-ltd-ib-905-nd-2019-327919c6

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Sudhir Sales and Services Ltd. (Operational Creditor) against Valaya Clothing Pvt Ltd. (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an outstanding amount of Rs. 2,61,876/- along with interest at 15% per annum. The Corporate Debtor was proceeded ex parte as there was no representation on its behalf. The Operational Creditor had supplied a DG Set to the Corporate Debtor under a purchase order dated 20.10.2012, for a monthly rental of Rs. 25,000/- plus tax.

## Facts

Sudhir Sales and Services Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Valaya Clothing Pvt Ltd. (Corporate Debtor) seeking initiation of CIRP. The Operational Creditor claimed that the Corporate Debtor owed Rs. 2,61,876/- along with interest at 15% per annum. The Corporate Debtor was proceeded ex parte. The Operational Creditor had supplied a 125KVA silent DG Set to the Corporate Debtor under a purchase order No. VCPL/RO/001 dated 20.10.2012, with a monthly rental of Rs. 25,000/- plus tax. The DG Set functioned without any problem. The invoices were raised and acknowledged by the Corporate Debtor, and part payments were released. An amount of Rs. 1,86,997/- remained unpaid. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has fulfilled the requirements of Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the procedure for an

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**Reasoning:** The court reasoned that the Operational Creditor had placed on record the purchase

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**Interpretation:** Section 9 of the IBC, 2016, is interpreted to mean that an operational creditor

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**Application:** In this case, the Operational Creditor demonstrated the existence of a debt and

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## Parties

- **Judges:** CH. MOHD SHARIEF…; K.K. V…
- **Respondents:** Valaya Clothing…

## Timeline

- **2012-10-20 — Purchase…**: Purchase order No. VCPL/RO/001 issued by the Corporate Debtor for hiring a 125KVA silent…
- **2012-10-21 — DG Set S…**: DG Set supplied/delivered to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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