# In the matter of P. M. Garments Exports Private Limited C.P. (IB) No. 583-KB-2020

> NCLT judgment dated 2022-06-07. Citation: TCN-2022-NCLT-02335. The case originates from a petition filed by Rajesh Kumar Parasrampuria, proprietor of Utex…

- **Court:** NCLT
- **Order date:** 7 Jun 2022
- **Citation:** TCN-2022-NCLT-02335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/p-m-garments-exports-private-limited-cp-ib-no-583-kb-2020-34c39ca5

## Summary

### Background

The case originates from a petition filed by Rajesh Kumar Parasrampuria, proprietor of Utex Corporation (Operational Creditor), under Section 9 of the Insolvency and Bankruptcy Code, 2016, against P.M. Garments Exports Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor failed to pay a sum of Rs. 17,01,424/-. The Corporate Debtor had approached the Operational Creditor for the supply of cotton hosiery yarn. The Operational Creditor supplied the goods and raised invoices, against which the Corporate Debtor made part payments, leaving a balance due.

## Facts

Rajesh Kumar Parasrampuria, the proprietor of Utex Corporation, is the Operational Creditor. P.M. Garments Exports Private Limited is the Corporate Debtor. The Corporate Debtor approached the Operational Creditor for the supply of cotton hosiery yarn. The Operational Creditor supplied goods and raised nine invoices totaling Rs. 47,65,551/-. The Corporate Debtor made part payments amounting to Rs. 30,64,127/-, leaving a balance of Rs. 17,01,424/-. The date of default is 09 September, 2019. The Operational Creditor issued a statutory notice dated 03 February, 2020, which was delivered on 06 February, 2020. The application was filed on 20 February, 2020. The Corporate Debtor made a payment of Rs. 6,00,000/- during the pendency of the petition, leaving a balance of Rs.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in payment of the outstanding debt to the Operational …

**Ratio:** Section 4(1) of the Insolvency and Bankruptcy Code, 2016 stipulates a minimum default

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**Reasoning:** The Adjudicating Authority observed that the Corporate Debtor failed to clear the

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**Interpretation:** The Code mandates that a default exceeding a specified amount, coupled with the

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**Application:** The Corporate Debtor's failure to pay the outstanding amount of Rs.

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Rajesh Kumar…
- **Respondents:** P.M. Garments…

## Timeline

- **2019-09-09 — Date of D…**: The Corporate Debtor failed to make…
- **2020-02-03 — Statutory…**: The Operational Creditor issued a…

## 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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