# In the matter of K G DENIM LIMITED

> NCLT judgment dated 2025-07-04. Citation: TCN-2025-NCLT-00831. The case pertains to an application filed by E Rajaram & Co., an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 4 Jul 2025
- **Citation:** TCN-2025-NCLT-00831
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chennai/k-g-denim-limited-740c4af4

## Summary

### Background

The case pertains to an application filed by E Rajaram & Co., an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against K G Denim Ltd., the Corporate Debtor.

## Facts

E Rajaram & Co. filed a petition under Section 9 of the IBC, 2016, against K G Denim Ltd. for initiating CIRP.

The Operational Creditor claimed a debt of Rs. 1,26,92,581/- from June 2020 to March 2024.

K G Denim Ltd. acknowledged the debt in a reply letter dated 31.07.2024 but cited water scarcity and banking issues as reasons for non-payment.

The Operational Creditor issued a demand notice dated 01.03.2025, which was delivered to the Corporate Debtor on 04.03.2025.

The Corporate Debtor did not deny the existence of the debt or raise any pre-existing dispute.

The Tribunal observed that the debt amount exceeded the threshold limit of Rs. 1 Crore.

The Tribunal appointed S Sundar Raman as the Interim Resolution Professional (IRP).

## Issues and analysis

### Issue 1: Whether the application under Section 9 …

**Ratio:** The application is maintainable if there is an operational debt, documentary evidence

…

**Reasoning:** The Tribunal relied on the judgment in Mobilox Innovations Pvt. Ltd. v/s. Kirusa Software

…

**Interpretation:** The existence of a debt and default, coupled with the absence of a pre-existing

…

**Application:** In this case, the Tribunal found that there was an operational debt, no

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Appellants:** E Rajaram…
- **Respondents:** K G Denim…
- **Other parties:** S Sundar…
- **Advocates:** Antony R…; V.R. Swetha…; +6 more

## Timeline

- **2020-06-01 — Debt Period…**: The debt period starts…
- **2024-03-01 — Debt Peri…**: The debt period ends in…

## 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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