# In the matter of India Denim Limited

> NCLT judgment dated 2023-09-22. Citation: TCN-2023-NCLT-01502. The case involves an application filed by M/s. Anushri Paper Pack Pvt. Ltd. (Operational…

- **Court:** NCLT
- **Order date:** 22 Sept 2023
- **Citation:** TCN-2023-NCLT-01502
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-denim-limited-a22e5fe1

## Summary

### Background

The case involves an application filed by M/s. Anushri Paper Pack Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. India Denim Limited (Corporate Debtor). The application was filed due to unpaid dues for packaging materials supplied by the Operational Creditor to the Corporate Debtor. The Corporate Debtor argued that the application was barred by limitation and that the goods supplied were of inferior quality. The Operational Creditor contended that part payments made by the Corporate Debtor extended the period of limitation.

## Facts

M/s. Anushri Paper Pack Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. India Denim Limited (Corporate Debtor). The application was based on unpaid dues for packaging materials supplied by the Operational Creditor. The total debt claimed was Rs. 8,48,127/-, comprising Rs. 3,65,616/- principal and Rs. 4,82,511/- contractual interest. The invoices were raised between July 2013 and November 2013. The Corporate Debtor made a payment of Rs. 40,000/- on 17.05.2016. The Operational Creditor issued a demand notice on 25.01.2019, which was delivered on 30.01.2019. The Corporate Debtor argued that the application was barred by limitation

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## Issues and analysis

### Issue 1: Whether the application under Section 9 …

**Ratio:** The application under Section 9 of the IBC, 2016, is maintainable if the operational debt

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**Reasoning:** The court relied on the judgment of the Hon'ble NCLAT in the matter of MCC Concrete

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** In this case, the operational debt was more than one lakh rupees, and the

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** ANUSHRI PAPER…
- **Respondents:** India Denim…; India Deni…

## Timeline

- **2019-05-06 — Application…**: Application filed by M/s. Anushri Paper…
- **2019-01-25 — Demand Notice…**: Demand notice issued to…

## 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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