# In the matter of Jindal Cotex Limited CP (IB) No. 113-Chd-Pb-2019

> NCLT judgment dated 2023-03-15. Citation: TCN-2023-NCLT-04247. IDBI Capital Markets & Securities Ltd. filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 15 Mar 2023
- **Citation:** TCN-2023-NCLT-04247
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jindal-cotex-limited-cp-ib-no-113-chd-pb-2019-2cc863a2

## Summary

### Background

IDBI Capital Markets & Securities Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Jindal Cotex Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The operational debt allegedly arose from advisory services for debt restructuring provided by IDBI Capital to Jindal Cotex, based on an offer letter dated 2013-06-13. The petitioner claimed that Jindal Cotex failed to pay the outstanding amount for these services, leading to the default. The corporate debtor disputed the claim, citing deficiencies in services, limitation issues, and a prior settlement.

## Facts

IDBI Capital Markets & Securities Ltd. (Operational Creditor) filed a petition against Jindal Cotex Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming an operational debt arising from advisory services for debt restructuring. An offer letter dated 2013-06-13 outlined the terms of the services. The Operational Creditor claimed that the Corporate Debtor failed to pay Rs. 76,79,364/-, which included principal and interest. The Corporate Debtor argued that the services were deficient, the claim was barred by limitation, and a full and final settlement of Rs. 22,47,200/- had been made. The last invoice was raised on 2013-12-31, and the demand notice was issued on 2018-05-07. The Corporate Debtor replied on 2018-05-21,

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## Issues and analysis

### Issue 1: Whether the demand notice dated …

**Ratio:** A demand notice must be served according to the provisions of the IBC. The service must

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**Reasoning:** The court noted that the demand notice was served through registered post, and the postal

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**Interpretation:** The proper service of a demand notice is a prerequisite for initiating CIRP.

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**Application:** In this case, the demand notice was served, but the corporate debtor disputed

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** IDBI Capital…
- **Respondents:** Jindal Cotex…
- **Advocates:** Ajay K…; Aalok J…; +1 more

## Timeline

- **2013-06-13 — Offer Lette…**: Offer letter issued by IDBI Capital Markets & Securities Ltd. to Jindal Cotex Limited for…
- **2013-12-31 — Last Invoic…**: Last invoice raised by IDBI Capital Markets &…

## 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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