# In the matter of National Textile Corpn Limited Company Petition No. IB-452-ND-2020

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-02572. M/s Hero Solar Energy Private Limited, the operational creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-02572
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/national-textile-corpn-limited-company-petition-no-ib-452-nd-2020-ba681ffe

## Summary

### Background

M/s Hero Solar Energy Private Limited, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s National Textile Corporation Limited, the corporate debtor, for an outstanding balance of Rs. 13,84,254/-. The debt arose from two contracts for solar rooftop power projects. The operational creditor claimed that the corporate debtor defaulted on payments despite completion of work. The corporate debtor contended that there was a dispute regarding the amount due, citing delays by the operational creditor and subsequent penalties imposed. The operational creditor refuted these claims, stating that no notice of dispute was ever given and that the

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## Facts

M/s Hero Solar Energy Private Limited (operational creditor) and M/s National Textile Corporation Limited (corporate debtor) entered into two contracts for solar rooftop power projects. The operational creditor claimed an outstanding balance of Rs. 13,84,254/-. The operational creditor was granted a Letter of Allocation by the Solar Energy Corporation of India (SECI) for the project. The operational creditor sent a demand notice under Section 8 of the IBC on 23.10.2019. The corporate debtor claimed a dispute, citing delays by the operational creditor and penalties imposed. The corporate debtor relied on emails and inter-departmental communications to prove the delay. The operational creditor argued that no notice of dispute was ever given and that reconciliation

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## Issues and analysis

### Issue 1: Whether the operational creditor, M/s Hero Solar Energy Private Limited, has established its claim …

**Ratio:** The operational creditor must demonstrate that a debt is due and payable by the corporate

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**Reasoning:** The NCLT found that the operational creditor had submitted sufficient evidence to

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**Interpretation:** The IBC requires the operational creditor to prove the existence of a debt and

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**Application:** The operational creditor provided evidence of the outstanding debt, and the

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## Parties

- **Judges:** DHARMINDER…; SUMITA PURK…; +1 more
- **Appellants:** M/S HERO SOLOR…
- **Respondents:** M/S NATIONAL…

## Timeline

- **2015-08-21 — Letter of All…**: Operational creditor was granted Letter of Allocation by Solar Energy Corporation of…
- **2016-05-20 — Work Ord…**: Work Orders/Purchase Orders for 423 kWp - Pioneers Spinners Kamuthakudi Project ("Project…

## 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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