# In the matter of Sadan Hosiery Private Limited

> NCLT judgment dated 2024-03-01. Citation: TCN-2024-NCLT-02272. Duke Fabrics (India) Limited, the Operational Creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 1 Mar 2024
- **Citation:** TCN-2024-NCLT-02272
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sadan-hosiery-private-limited-a5267435

## Summary

### Background

Duke Fabrics (India) Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Sadan Hosiery Private Limited, the Corporate Debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The claim was based on the Corporate Debtor's alleged default in payment of an operational debt amounting to Rs. 1,47,70,999.06/-. The Operational Creditor claimed to have supplied fabrics and dyed fabrics on a job-work basis to the Corporate Debtor between 18.03.2021 and 09.12.2021, with invoices issued with a 30-day credit period. The Corporate Debtor, however, claimed that there was a pre-existing dispute regarding the quality of services and fabric, as well as the quantum of debt. The Corporate Debtor

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## Facts

Duke Fabrics (India) Limited, the Operational Creditor, filed a petition against Sadan Hosiery Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, for default in payment of Rs. 1,47,70,999.06/-. The Operational Creditor claimed to have supplied fabrics and dyed fabrics on job work basis between 18.03.2021 and 09.12.2021, with a 30-day credit period. A demand notice was issued on 07.01.2023. The Corporate Debtor replied on 29.05.2023, stating that the actual amount payable was Rs. 32.50 lacs as on 15.06.2022, and claimed a pre-existing dispute evidenced by WhatsApp chats, emails, and other communications. The Corporate Debtor argued that the Operational Creditor's claim did not include compensation of Rs. 10,99,876/- due

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## Issues and analysis

### Issue 1: Whether the petition was filed …

**Ratio:** The limitation period for filing a petition under Section 9 of the IBC is governed by the

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**Reasoning:** The NCLT determined that the last invoice was raised on 09.12.2021, and after accounting

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**Interpretation:** The interpretation of the limitation period requires calculating the due date

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**Application:** In this case, the petition was filed within the prescribed limitation period,

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## Parties

- **Judges:** Harnam Singh…; L. N. G…
- **Appellants:** Duke Fabrics…
- **Respondents:** Sadan Hosiery…

## Timeline

- **2021-03-18 — Supply of F…**: Operational Creditor supplied fabrics and dyed fabrics on job-work basis to the Corporate…
- **2021-12-09 — Last Invoice…**: The last invoice was raised…

## 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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