# In the matter of Virar Fabrics Private Limited C.P. No. (IB) 788-9-NCLT-AHM-2019

> NCLT judgment dated 2021-03-01. Citation: TCN-2021-NCLT-02892. The case involves an application filed by M/s. Kuber Texlen Private Limited, an operational…

- **Court:** NCLT
- **Order date:** 1 Mar 2021
- **Citation:** TCN-2021-NCLT-02892
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/virar-fabrics-private-limited-cp-no-ib-788-9-nclt-ahm-2019-95703b81

## Summary

### Background

The case involves an application filed by M/s. Kuber Texlen Private Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Virar Fabrics Private Limited, the corporate debtor, for an outstanding operational debt. The applicant claimed that the respondent was indebted a total sum of Rs. 37,08,202.93, including interest, for goods supplied between 15.05.2018 and 01.02.2019. The applicant provided copies of unpaid tax invoices, delivery challans, e-way bills, ledger entries, and a demand notice as evidence.

## Facts

M/s. Kuber Texlen Private Limited (the applicant), an operational creditor engaged in manufacturing yarn, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Virar Fabrics Private Limited (the respondent/corporate debtor), a company involved in spinning and finishing textile fabric. The applicant claimed that the respondent owed a total sum of Rs. 37,08,202.93, including interest of Rs. 5,53,577.93, for goods supplied between 15.05.2018 and 01.02.2019. The applicant submitted copies of unpaid tax invoices, delivery challans, e-way bills, ledger entries, and a demand notice as evidence. The respondent did not raise any dispute regarding the quality or quantity of the goods supplied. The demand notice dated 06.08.2019 was delivered

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

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

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**Reasoning:** The Adjudicating Authority found that the applicant had submitted sufficient evidence,

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

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**Application:** The applicant, being an operational creditor, demonstrated that the respondent

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** M/s. Kuber Texlen…
- **Respondents:** M/s. Virar…

## Timeline

- **2018-05-15 — Start of Good…**: The applicant started…
- **2019-02-01 — End of Goods…**: The applicant stopped…

## 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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