# In the matter of Green Shield Enterprises Private Limited

> NCLT judgment dated 2025-01-07. Citation: TCN-2025-NCLT-00665. The case pertains to an application filed by Tanishi Tradewell Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 7 Jan 2025
- **Citation:** TCN-2025-NCLT-00665
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/green-shield-enterprises-private-limited-f1675f26

## Summary

### Background

The case pertains to an application filed by Tanishi Tradewell Private Limited, the Operational Creditor (OC), under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Green Shield Enterprises Private Limited, the Corporate Debtor (CD). The application was filed due to an alleged default of operational debt amounting to Rs. 5,62,66,435/-.

## Facts

Tanishi Tradewell Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Green Shield Enterprises Private Limited (Corporate Debtor) due to a default in payment of operational debt amounting to Rs. 5,62,66,435/-. The Operational Creditor is engaged in the business of trading in Greige Goods. The Corporate Debtor purchased Cotton Linen Printed Fabrics from the Operational Creditor vide Purchase Order dated 01.03.2020, with receipt acknowledged via delivery notes dated 21.03.2020 and 23.03.2020. A demand notice (Form 4) dated 11.02.2023 was issued to the Corporate Debtor. The Corporate Debtor acknowledged the balance due in its Balance

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## Issues and analysis

### Issue 1: Whether the application for CIRP should be admitted given the Corporate Debtor's claim of financial …

**Ratio:** The focus of the IBC is on the timely resolution of corporate defaults. Financial

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**Reasoning:** The court reasoned that while the Corporate Debtor claimed financial distress due to

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**Interpretation:** This interpretation clarifies that external factors causing financial distress

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**Application:** The Corporate Debtor's claim of financial distress due to COVID-19 was not

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** TANISHI TRADEWELL…
- **Respondents:** Green Shield…

## Timeline

- **2020-03-01 — Purchase Ord…**: The Corporate Debtor purchased Cotton Linen Printed Fabrics from the Operational Creditor…
- **2020-03-21 — Delivery No…**: Delivery Notes acknowledging receipt…

## 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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