# In the matter of ACE Footmark Private Limited

> NCLT judgment dated 2023-08-17. Citation: TCN-2023-NCLT-02009. The case involves an application filed by Bajaj Rubber Company Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 17 Aug 2023
- **Citation:** TCN-2023-NCLT-02009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ace-footmark-private-limited-af6207c8

## Summary

### Background

The case involves an application filed by Bajaj Rubber Company Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Ace Footmark Private Limited, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted in making payments for raw materials supplied. During the pendency of the matter, the parties entered into a Settlement Deed, where the Corporate Debtor agreed to pay a certain sum. However, the Corporate Debtor failed to comply with the Settlement Agreement, leading to the restoration of the application.

## Facts

Bajaj Rubber Company Private Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ace Footmark Private Limited, the corporate debtor, due to unpaid dues for supplied raw materials. Bajaj Rubber Company is involved in the distribution of chemicals and imports raw materials, while Ace Footmark manufactures footwear products. Bajaj Rubber Company supplied raw materials to Ace Footmark, but Ace Footmark failed to make payments against the invoices raised. The parties entered into a settlement deed on 17.01.2019, where Ace Footmark agreed to pay Rs. 1,32,29,905. Based on this, Bajaj Rubber Company withdrew the petition on 08.02.2019. However, Ace

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## Issues and analysis

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

**Ratio:** The law of IBC remains enacted with the roots of default and where the default exists

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**Reasoning:** The court considered the submissions of the Operational Creditor and the documents on

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The Corporate Debtor admitted to a debt exceeding Rs. 1 Lakh, and the default

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/s. Bajaj Rubber…
- **Respondents:** M/s. Ace Footmark…; M/s. Ace Footmark…

## Timeline

- **2018-02-11 — Demand Notice…**: The Operational Creditor issued a Demand Notice for Rs. 1,87,09,857/- to the Corporate…
- **2018-02-22 — Reply to Deman…**: The Corporate Debtor…

## 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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