# 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-02778. 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-02778
- **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-aed0ca65

## 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 is a company incorporated on 09.03.1987. The operational creditor claimed a default of Rs. 2,46,87,688.59 occurred on 02.05.2020. A demand notice was served on the corporate debtor on 11.08.2021.

## 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. The Operational Creditor claimed that the Corporate Debtor defaulted on an operational debt amounting to Rs. 2,46,87,688.59, with the default occurring on 02.05.2020. The Operational Creditor served a demand notice to the Corporate Debtor on 11.08.2021. The Corporate Debtor admitted its inability to pay its outstanding debts. The operational creditor supplied goods to the corporate debtor and raised invoices. Ledger accounts maintained by the operational creditor were attached as

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## 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

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

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**Interpretation:** The demand notice must be properly served to initiate CIRP. The tracking report

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**Application:** Since the demand notice was received as per the tracking report, the

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## Parties

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

## Timeline

- **1987-03-09 — Incorporation of…**: Drish Shoes Limited was…
- **2020-03-24 — Amendment in threshold…**: Amendment in threshold limit of one…

## 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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