# In the matter of Kimaya Industries Private Limited CP (IB) 04-NCLT-AHM-2022

> NCLT judgment dated 2023-02-03. Citation: TCN-2023-NCLT-04793. The case involves an application filed by Kotharishah Texturisers Private Ltd. (Operational…

- **Court:** NCLT
- **Order date:** 3 Feb 2023
- **Citation:** TCN-2023-NCLT-04793
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kimaya-industries-private-limited-cp-ib-04-nclt-ahm-2022-9c853d74

## Summary

### Background

The case involves an application filed by Kotharishah Texturisers Private Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Kimaya Industries Private Limited (Corporate Debtor). The application was filed due to the corporate debtor's failure to pay an outstanding debt of Rs. 1,63,57,009.49, which includes an interest component of Rs. 56,78,665.47, for goods supplied between 02.09.2019 and 19.12.2019. The applicant issued demand notices, which the corporate debtor denied. The corporate debtor contested the application, claiming the applicant failed to provide sufficient documentation and that the interest claim was not valid.

## Facts

Kotharishah Texturisers Private Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Kimaya Industries Private Limited (Corporate Debtor). The application was based on an alleged default in payment of Rs. 1,63,57,009.49, which includes an interest component of Rs. 56,78,665.47, for goods supplied between 02.09.2019 and 19.12.2019. The applicant issued demand notices, which the corporate debtor denied. The corporate debtor contested the application, claiming the applicant failed to provide sufficient documentation and that the interest claim was not valid. The corporate debtor also alleged that the applicant had included goods supplied to other

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The NCLT considered the submissions and documents presented by both parties to determine

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**Interpretation:** Section 9 provides the framework for operational creditors to trigger the

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**Application:** The NCLT examined whether the applicant, Kotharishah Texturisers Private Ltd.,

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## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Kotharishah…
- **Respondents:** Kimaya Industries…

## Timeline

- **2019-09-02 — Goods Sup…**: Goods supplied by Kotharishah Texturisers Private Ltd. to Kimaya Industries Private…
- **2019-12-19 — Last Date of Goods…**: Last date of goods supplied by Kotharishah Texturisers Private Ltd. to Kimaya Industries…

## 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)

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