# In the matter of Creative Merchants Ltd.

> NCLT judgment dated 2024-03-22. Citation: TCN-2024-NCLT-01970. The application was filed by the applicant, Yogesh Hariprasad Barot Sole Proprietor of Yogi…

- **Court:** NCLT
- **Order date:** 22 Mar 2024
- **Citation:** TCN-2024-NCLT-01970
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/creative-merchants-ltd-bfd26fa7

## Summary

### Background

The application was filed by the applicant, Yogesh Hariprasad Barot Sole Proprietor of Yogi Impex, to initiate the Corporate Insolvency Resolution Process (CIRP) against Creative Merchants Ltd. The applicant claimed a principal debt of Rs. 1,01,22,902 and interest of Rs. 1,20,26,007 until 30.07.2022, totaling Rs. 2,21,48,909, for the sale of goods. The applicant stated the default occurred on 26.12.2015, and a demand notice was issued on 01.08.2022, along with a NeSL certificate. The respondent acknowledged purchasing goods worth Rs. 1,01,22,902 through bills dated 28.08.2015 but stated they are in financial distress and not carrying on any business for the last 4 years.

## Facts

Yogesh Hariprasad Barot Sole Proprietor of Yogi Impex filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against Creative Merchants Ltd. The applicant claimed a total debt of Rs. 2,21,48,909, including principal and interest, for the sale of goods. The applicant stated the default occurred on 26.12.2015, and a demand notice was issued on 01.08.2022. The respondent acknowledged the debt but stated they are in financial distress and not carrying on any business for the last 4 years. The NeSL certificate presented by the applicant mentioned a different default amount (Rs. 22,14,89,909) and a different default date (01.09.2020) than what was claimed in the application. The applicant did not provide any explanation for these discrepancies. The

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## Issues and analysis

### Issue 1: Whether the application to initiate Corporate Insolvency Resolution Process (CIRP) is maintainable …

**Ratio:** The application must be based on accurate and consistent information regarding the

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**Reasoning:** The court noted that the NeSL certificate presented by the applicant mentioned a

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**Interpretation:** The legal issue revolves around the importance of accurate and consistent

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**Application:** In this case, the discrepancies between the default date and amount in the

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Yogesh Hariprasad…
- **Respondents:** Creative Merchants…

## Timeline

- **2015-12-26 — Date of Default (as per…**: The applicant claimed that the…
- **2015-08-28 — Bills Da…**: The respondent acknowledged purchasing goods worth Rs. 1,01,22,902 through bills dated…

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