# In the matter of Gujarat Hy - Spin Limited CP (IB) 222-NCLT-AHM-2020

> NCLT judgment dated 2022-12-20. Citation: TCN-2022-NCLT-00104. The application was filed on 2020-03-12 under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Dec 2022
- **Citation:** TCN-2022-NCLT-00104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gujarat-hy-spin-limited-cp-ib-222-nclt-ahm-2020-5f9b28ed

## Summary

### Background

The application was filed on 2020-03-12 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, by Jayatma Industries Limited (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against Gujarat Hy-Spin Limited (Corporate Debtor). The applicant claimed a total sum of Rs. 1,83,99,265/- due and payable by the corporate debtor towards invoices raised between 2018-07-29 and 2018-08-30 for the supply of cotton bales. The applicant issued a demand notice on 2020-02-10 under Section 8 of the IBC, which was delivered to the corporate debtor on 2020-02-26. The corporate debtor raised objections, including that each supply of cotton

…

## Facts

Jayatma Industries Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Gujarat Hy-Spin Limited (Corporate Debtor). The application was filed on 2020-03-12. The operational creditor claimed that the corporate debtor owed Rs. 1,83,99,265/- for cotton bales supplied between 2018-07-29 and 2018-08-30. A demand notice was issued on 2020-02-10 under Section 8 of the IBC and delivered on 2020-02-26. The corporate debtor raised objections, including that each supply was a separate transaction, the application was time-barred, there were pre-existing disputes, the cotton was of inferior quality, and the applicant was not an operational

…

## Issues and analysis

### Issue 1: Whether the application under …

**Ratio:** Section 9(5) of the IBC states that the Adjudicating Authority shall admit the

…

**Reasoning:** The NCLT found that the application was complete, the debt was due and payable, and

…

**Interpretation:** Section 9 of the IBC provides the framework for an operational creditor to

…

**Application:** The NCLT determined that the applicant had met the requirements under Section 9

…

## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Jayatma Industries…
- **Respondents:** Gujarat Hy-Spin…

## Timeline

- **2018-07-29 — Invoice Perio…**: Start of the period during which invoices…
- **2018-08-30 — Invoice Per…**: End of the period during which invoices were…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

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/gujarat-hy-spin-limited-cp-ib-222-nclt-ahm-2020-5f9b28ed