# In the matter of Loom Crafts Furniture (India) Private Limited (IB)-1089(ND)-2020

> NCLT judgment dated 2022-09-08. Citation: TCN-2022-NCLT-01135. Trans Asian Shipping Services Private Limited, the operational creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 8 Sept 2022
- **Citation:** TCN-2022-NCLT-01135
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/loom-crafts-furniture-india-private-limited-ib-1089nd-2020-40cdfb6e

## Summary

### Background

Trans Asian Shipping Services Private Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Loom Crafts Furniture (India) Private Limited, the corporate debtor, due to unpaid operational debt. The debt arose from the import of 'Remelted Lead Ingots/Blocks' by the corporate debtor from Malaysia, with the applicant providing shipping services. The consignment arrived in India in 2007, but the corporate debtor allegedly failed to clear the goods, leading to container detention charges and other expenses. The operational creditor issued a demand notice in 2018, but the corporate debtor did not make the payment. The corporate debtor

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## Facts

Trans Asian Shipping Services Private Limited (operational creditor) filed a petition against Loom Crafts Furniture (India) Private Limited (corporate debtor) under Section 9 of the IBC, 2016. The operational debt was claimed to be Rs. 3,92,23,873/- arising from unpaid shipping services. The corporate debtor imported 'Remelted Lead Ingots/Blocks' from Port Klang, Malaysia, with Alcomet Industries SDN BHD as the shipper. The consignment arrived at ICD Tughlakabad in November 2007. The corporate debtor allegedly failed to clear the goods, leading to container detention charges and other expenses. The operational creditor issued a demand notice on 13.04.2018. The corporate debtor replied on 10.05.2018, denying any liability. The operational creditor claimed that the

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor is maintainable under Section 9 of the …

**Ratio:** The NCLT, exercising powers under Section 7 or Section 9 of IBC, is not a debt collection

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**Reasoning:** The court observed that the sole objective of the Applicant behind filing this

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**Interpretation:** The IBC is intended to address insolvency and bankruptcy, not to be used as a

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**Application:** The court applied this principle to the case, finding that the application was

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## Parties

- **Judges:** SH. DHARM…; L. N. G…
- **Appellants:** Trans Asian…
- **Respondents:** Loom Crafts…
- **Advocates:** Aditi S…; Akshay Sriv…; +3 more

## Timeline

- **2005-09-02 — Incorporation of…**: Loom Crafts Furniture (India)…
- **2007-11-15 — Bill of Ladi…**: Bill of Lading No. TALTPK00269447 was…

## 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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