# In the matter of Rameshwar Textiles Mills Private Limited

> NCLT judgment dated 2024-01-02. Citation: TCN-2024-NCLT-03369. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 2 Jan 2024
- **Citation:** TCN-2024-NCLT-03369
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rameshwar-textiles-mills-private-limited-08989eec

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Ashish Omprakash Jain, the Operational Creditor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Rameshwar Textile Mills Private Limited, the Corporate Debtor, due to a default in payment of Rs. 4,29,14,887.12. The Corporate Debtor was incorporated on 18.08.1998. The Operational Creditor supplied Nylon Brown Socks Pair against six invoices spanning from November 16, 2017, to December 27, 2017. The Corporate Debtor defaulted on the loan amount on 22.12.2021.

## Facts

Ashish Omprakash Jain, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Rameshwar Textile Mills Private Limited, the Corporate Debtor. The total debt amount is Rs. 4,29,14,887.12, and the default date is 22.12.2021. The Corporate Debtor was incorporated on 18.08.1998. The Operational Creditor supplied 'Nylon Brown Socks Pair' against six invoices between November 16, 2017, and December 27, 2017. The Corporate Debtor made a payment of Rs. 40,00,000 between December 14, 2021, and December 21, 2021. The Operational Creditor served a demand notice dated April 24, 2023. The Corporate Debtor was set ex-parte as they did not appear before the Bench.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payments to the Operational Creditor, leading to …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The NCLT observed that the Corporate Debtor failed to make full payment for the goods

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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

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## Parties

- **Judges:** V.G. B…; SH. PRABHAT…
- **Appellants:** Ashish Omprakash…
- **Respondents:** Rameshwar Textile…
- **Advocates:** Aniruth Purusotham…

## Timeline

- **1998-08-18 — Incorporation of…**: Rameshwar Textile Mills…
- **2017-11-16 — Start of Invoi…**: The Corporate Debtor was supplied 'Nylon Brown Socks Pair' against six invoices spanning…

## 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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