# Arpith Jain G. vs. Tharun Tex Spin Mills (P) Ltd.

> NCLT judgment dated 2026-07-02. Citation: TCN-2026-NCLT-00716. Arpith Jain G., an operational creditor, filed a Section 9 IBC petition against Tharun Tex Spin…

- **Court:** NCLT
- **Order date:** 2 Jul 2026
- **Citation:** TCN-2026-NCLT-00716
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/arpith-jain-g-vs-tharun-tex-spin-mills-k9a7u

## Summary

### Background

Arpith Jain G., an operational creditor, filed a Section 9 IBC petition against Tharun Tex Spin Mills (P) Ltd., the corporate debtor, for an unpaid operational debt of Rs. 3,71,22,356/- for rayon fabric supplies. The corporate debtor disputed the debt, claiming non-delivery of goods and a pre-existing dispute.

## Facts

Arpith Jain G., a sole proprietor of Mayiks Fabric (Operational Creditor), filed a petition under Section 9 of the IBC, 2016.

The petition was filed against Tharun Tex Spin Mills (P) Ltd. (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP).

The alleged operational debt is Rs. 3,71,22,356/-, with the date of default being 22.10.2022.

Mayiks Fabric is in the business of textile manufacturing and supplying Rayon Fabric.

Tharun Tex Spin Mills (P) Ltd. is engaged in manufacturing yarn and allied businesses.

The Operational Creditor had been supplying rayon fabric to the Corporate Debtor for many years.

From 2022, the Corporate Debtor allegedly ceased payments, leading to 7 pending invoices.

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute regarding the operational debt before the demand notice …

**Ratio:** A pre-existing dispute must exist before the receipt of the demand notice or invoice for

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**Reasoning:** The Respondent (Corporate Debtor) never raised a dispute prior to receiving the demand

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**Interpretation:** The NCLT interprets "pre-existing dispute" strictly, requiring

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**Application:** In this case, the Corporate Debtor's actions (raising dispute in reply to

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** Arpith Ja…
- **Respondents:** Tharun Tex Spin…
- **Other parties:** Chandra…; Baby Chandr…; +2 more
- **Advocates:** Menka Chinn…; Shri. Krish…; +2 more

## Timeline

- **2013-09-02 — Corporate Debtor…**: Tharun Tex Spin Mills (P)…
- **2022-10-22 — Date of D…**: The last date of supply of goods, marking 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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