# In the matter of Vijai Mahalaxmi Spinning Mills India Private Limited CP-593-(IB)-CB-2017

> NCLT judgment dated 2017-11-07. Citation: TCN-2017-NCLT-00235. The case originates from an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 Nov 2017
- **Citation:** TCN-2017-NCLT-00235
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vijai-mahalaxmi-spinning-mills-india-private-limited-cp-593-ib-cb-2017-0bc61d84

## Summary

### Background

The case originates from an application filed 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, by an Operational Creditor against a Corporate Debtor. The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP), declare a moratorium, and appoint an Interim Resolution Professional (IRP). The Corporate Debtor was proceeded against ex parte.

## Facts

The Operational Creditor, M/s. Anant Agro Industries, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against the Corporate Debtor, M/s. Vijai Mahalaxmi Spinning Mills India Private Limited, for defaulting on payments. The Operational Creditor sold cotton bales to the Corporate Debtor, with the entire payment due on 2014-08-05. The Corporate Debtor made only partial payments, leaving an outstanding amount of Rs. 8,45,575/-, including interest. The Operational Creditor sent a statutory notice under Section 8 of the I&B Code on 2017-09-02, which was delivered to the Corporate Debtor on 2017-09-07. The Corporate Debtor did not respond to the notice. The Operational Creditor also filed an affidavit and a bank certificate to comply with

…

## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, specifies the conditions under

…

**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence,

…

**Interpretation:** Section 9 of the I&B Code is interpreted to mean that if an Operational

…

**Application:** In this case, the Operational Creditor demonstrated that the Corporate Debtor

…

## Parties

- **Judges:** CH. MOHD SHARIEF…; S. VIJAYARA…
- **Appellants:** M/s. Anant Agro…
- **Respondents:** M/s. Vijai…

## Timeline

- **2014-08-05 — Payment Du…**: Entire payment for cotton bales sold by the Operational Creditor to the Corporate Debtor…
- **2017-09-02 — Statutory Not…**: The Operational Creditor sent a statutory notice under Section 8 of the I&B Code claiming…

## 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)

---

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/vijai-mahalaxmi-spinning-mills-india-private-limited-cp-593-ib-cb-2017-0bc61d84