# In the matter of Yashoda Cotton & General Mills CP (IB) No. 111-Chd-Pb-2017

> NCLT judgment dated 2017-11-28. Citation: TCN-2017-NCLT-00127. The case originates from a petition filed by M/s Kapil Dev Kansal, an operational creditor,…

- **Court:** NCLT
- **Order date:** 28 Nov 2017
- **Citation:** TCN-2017-NCLT-00127
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/yashoda-cotton-general-mills-cp-ib-no-111-chd-pb-2017-5a66f3c1

## Summary

### Background

The case originates from a petition filed by M/s Kapil Dev Kansal, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the insolvency resolution process against Yashoda Cotton & General Mills (P) Ltd., the corporate debtor. The petition was filed due to unpaid dues for goods purchased by the corporate debtor. The petitioner claimed that the corporate debtor had defaulted on payments for goods purchased between 18.02.2015 and 01.03.2016, with an outstanding amount of ₹2,77,906.92. The petitioner submitted a demand notice, copies of invoices, bank statements, and ledger accounts to support the claim. The corporate debtor was incorporated on 25.03.2008.

## Facts

M/s Kapil Dev Kansal, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Yashoda Cotton & General Mills (P) Ltd., the corporate debtor, due to unpaid dues. The corporate debtor was incorporated on 25.03.2008. The operational creditor claimed that the corporate debtor purchased goods between 18.02.2015 and 01.03.2016, with an outstanding amount of ₹2,77,906.92. The operational creditor served a demand notice on the corporate debtor. The initial petition had defects, including the lack of proper certification from the financial institution and unsigned documents. The operational creditor rectified these defects by submitting an affidavit and a certificate from the State Bank of India. The corporate debtor

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor meets the requirements of Section 9 of the …

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

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**Reasoning:** The court considered the evidence presented by the operational creditor, including the

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**Interpretation:** Section 9 of the IBC is interpreted to provide a mechanism for operational

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**Application:** In this case, the court found that the operational creditor had demonstrated

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** M/s Kapil Dev…
- **Respondents:** Yashoda Cotton &…

## Timeline

- **2008-03-25 — Incorporation of…**: Yashoda Cotton & General Mills…
- **2015-02-18 — Start of Transaction…**: The respondent purchased goods…

## 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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