# In the matter of Mudra Denim Pvt. Ltd. C.P. 4356-IB-MB-2019

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00736. The case involves an application filed by Jayprabhu Industries LLP, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00736
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mudra-denim-pvt-ltd-cp-4356-ib-mb-2019-13eed7ef

## Summary

### Background

The case involves an application filed by Jayprabhu Industries LLP, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Mudra Denim Pvt. Ltd., the Corporate Debtor, for a resolution of operational debt amounting to Rs. 47,96,754. The Operational Creditor claimed that the Corporate Debtor failed to make payments for the supply of cotton yarn. The Corporate Debtor did not file any reply to the Company Petition.

## Facts

Jayprabhu Industries LLP, the Operational Creditor, filed a petition against Mudra Denim Pvt. Ltd., the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP for an outstanding operational debt of Rs. 47,96,754. The debt arose from the supply of cotton yarn by the Operational Creditor to the Corporate Debtor. The Corporate Debtor had approached the Operational Creditor for the supply of cotton yarn around August 2017 and had been purchasing cotton yarn since then. Up to March 2018, the Corporate Debtor had carried out transactions of a considerable amount and had not raised any dispute regarding the quantity or quality of the products. The Corporate Debtor failed to make payments for invoices raised from 07.02.2018 to

…

## Issues and analysis

### Issue 1: Whether the Operational Creditor has successfully demonstrated the existence of debt and default on …

**Ratio:** The existence of debt and default is a prerequisite for the initiation of CIRP under

…

**Reasoning:** The court relied on the documents submitted by the Operational Creditor, including

…

**Interpretation:** The court interpreted the provisions of Section 9 of the Insolvency and

…

**Application:** In this case, the Operational Creditor provided sufficient evidence, including

…

## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** Jayprabhu…
- **Respondents:** Mudra Denim Pvt.…

## Timeline

- **2017-08-01 — Respondent Approached…**: The Respondent company approached the Petitioner for the purpose of procuring supply of…
- **2018-03-01 — Transactions Ca…**: Up to March 2018, the Respondent had carried out transactions of a considerable amount…

## 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/mudra-denim-pvt-ltd-cp-4356-ib-mb-2019-13eed7ef