# In the matter of Bombay Rayon Fashions Limited CP (IB) No.1443-MB-IV-2020

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02334. This is a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02334
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bombay-rayon-fashions-limited-cp-ib-no1443-mb-iv-2020-a71db489

## Summary

### Background

This is a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Vikash Parasprampuria, the Sole Proprietor of Chiranjilal Yarn Traders, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Bombay Rayon Fashions Limited. The Operational Creditor claims that the Corporate Debtor failed to make payment of a total sum of Rs. 1,60,87,838/-, including interest at 18% p.a. The date of default is 1.11.2020. The Corporate Debtor is a company incorporated on 21.05.1992 under the Companies Act, 1956.

## Facts

Vikash Parasprampuria, the Operational Creditor and Sole Proprietor of Chiranjilal Yarn Traders, filed a petition under Section 9 of the IBC to initiate CIRP against Bombay Rayon Fashions Limited, the Corporate Debtor. The Corporate Debtor allegedly defaulted on a total sum of Rs. 1,60,87,838/-, including interest at 18% p.a., with the date of default being 1.11.2020. The debt arose from 9 invoices, with a principal amount of Rs. 97,87,220/- and the remaining amount as interest. The Corporate Debtor accepted the goods without protest and made part payments on some invoices. The Operational Creditor sent reminders to the Corporate Debtor on 14/09/2020 and 28/09/2020. A demand notice was served on 05.11.2020 and delivered on 07.11.2020. The Corporate Debtor did not file

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is complete and meets the requirements of …

**Ratio:** The petition must be complete in all respects as required by law for the initiation of

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**Reasoning:** The Tribunal observed that the Corporate Debtor acknowledged its liability through

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**Interpretation:** Section 9 of the IBC requires the Operational Creditor to provide evidence of

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**Application:** The Tribunal found that the petition was complete, as the Operational Creditor

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## Parties

- **Judges:** RAJESH S…; KISHORE VEMULAPALL…
- **Appellants:** Vikash Parasprampu…
- **Respondents:** Bombay Rayon…

## Timeline

- **1992-05-21 — Incorporation of…**: Bombay Rayon Fashions Limited…
- **2017-05-22 — Invoice…**: Invoice E664 issued for…

## 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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