# In the matter of Bunaai Whiteofficial Pvt. Ltd.

> NCLT judgment dated 2024-09-23. Citation: TCN-2024-NCLT-00567. M/s Gupta Fab Tex, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 23 Sept 2024
- **Citation:** TCN-2024-NCLT-00567
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bunaai-whiteofficial-pvt-ltd-70b45f11

## Summary

### Background

M/s Gupta Fab Tex, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bunaai Whiteofficial Pvt. Ltd., the corporate debtor, due to a default in payment of an operational debt amounting to Rs. 5,59,63,578.40/- along with 18% interest. The corporate debtor is a private limited company incorporated on 27.09.2018. The operational creditor is a partnership firm. The corporate debtor claimed there was a pre-existing dispute and that the operational creditor was not a registered firm under the Partnership Act. The corporate debtor also raised issues of limitation and set-off.

## Facts

M/s Gupta Fab Tex (Operational Creditor), a partnership firm, supplied grey/dyed fabric, dyed and printed fabric and dress material to Bunaai Whiteofficial Pvt. Ltd. (Corporate Debtor) since September 2019. The Corporate Debtor raised total bills/invoices of Rs. 3,68,89,318.46/-. The Corporate Debtor made a payment of Rs. 28,39,257/- on 26.08.2021, but no further payments were made. The ledger balance showed an outstanding balance of Rs. 3,03,89,318.46/- as on 31.03.2022. A Demand Notice dated 10.01.2023 was issued by the Operational Creditor for the outstanding amount of Rs. 5,59,63,578.40/-, which includes principal and interest at 18% per annum. The Corporate Debtor claimed a pre-existing dispute, stating that the partners of the Operational Creditor and the

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## Issues and analysis

### Issue 1: Whether an unregistered partnership firm can initiate proceedings under Section 9 of the Insolvency …

**Ratio:** Section 69 of the Partnership Act does not bar an unregistered partnership firm from

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**Reasoning:** The Adjudicating Authority relied on the judgment of the Hon'ble NCLAT in Rourkela Steel

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**Interpretation:** Section 69 of the Partnership Act, 1932, restricts the enforcement of rights

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**Application:** The Operational Creditor, M/s Gupta Fab Tex, is a partnership firm that may or

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** M/S GUPTA F…
- **Respondents:** BUNAAI WHITEOFFICI…

## Timeline

- **2018-09-27 — Corporate Debtor…**: Bunaai Whiteofficial Pvt. Ltd.…
- **2019-09-01 — Commencement o…**: Corporate Debtor started placing orders with the Operational Creditor for supplying…

## 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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