# In the matter of Drish Shoes Private Limited CP (IB) No. 239-Chd-Hry-2021

> NCLT judgment dated 2022-05-12. Citation: TCN-2022-NCLT-02772. Reem Tanners Private Limited, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 12 May 2022
- **Citation:** TCN-2022-NCLT-02772
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/drish-shoes-private-limited-cp-ib-no-239-chd-hry-2021-733d3bcc

## Summary

### Background

Reem Tanners Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Drish Shoes Limited, the corporate debtor, due to unpaid operational debt. The corporate debtor, Drish Shoes Limited, is a company incorporated under the Companies Act, 1956. The operational creditor claimed a default of Rs. 2,46,87,688.59 occurred on 02.05.2020. The operational creditor supplied goods (wet blue) to the corporate debtor and raised invoices, which were duly received and acknowledged. A demand notice in Form 3 & 4 dated 11.08.2021 was served on the corporate debtor.

## Facts

Reem Tanners Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Drish Shoes Limited (Corporate Debtor). The corporate debtor was incorporated on 09.03.1987 under the Companies Act, 1956. The operational creditor supplied goods (wet blue) to the corporate debtor, and invoices were raised, which were duly received and acknowledged. The amount claimed to be in default is Rs. 2,46,87,688.59, with the default occurring on 02.05.2020. A demand notice in Form 3 & 4 dated 11.08.2021 was served on the corporate debtor. The corporate debtor, in its reply dated 01.02.2022, stated it was unable to pay its creditors due to imminent losses. The

…

## Issues and analysis

### Issue 1: Whether the demand notice in Form 3 …

**Ratio:** A demand notice is considered duly served if it is received by the corporate debtor as

…

**Reasoning:** The Adjudicating Authority noted that the demand notice was received as per the tracking

…

**Interpretation:** The demand notice must be properly served to initiate CIRP. Proper service is

…

**Application:** The demand notice was sent via speed post and the tracking report confirmed its

…

## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Reem Tanners…
- **Respondents:** Drish Shoes…

## Timeline

- **1987-03-09 — Incorporation of…**: Drish Shoes Limited was…
- **2020-05-02 — Date of D…**: The default occurred on this date,…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/drish-shoes-private-limited-cp-ib-no-239-chd-hry-2021-733d3bcc