# In the matter of Sakthi Ganesh Textiles Private Limited IBA-832-2020

> NCLT judgment dated 2022-04-25. Citation: TCN-2022-NCLT-03101. The case involves an application filed by Sri Saravana Mills Private Limited, an Operational…

- **Court:** NCLT
- **Order date:** 25 Apr 2022
- **Citation:** TCN-2022-NCLT-03101
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sakthi-ganesh-textiles-private-limited-iba-832-2020-81926b98

## Summary

### Background

The case involves an application filed by Sri Saravana Mills Private Limited, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Sakthi Ganesh Textiles Private Limited, the Corporate Debtor. The Operational Creditor claimed a sum of Rs. 6,00,001/- was due and payable by the Corporate Debtor, with the date of default mentioned as 02.08.2018. The Corporate Debtor disputed the claim, alleging that a credit note was issued for the amount. The Operational Creditor denied issuing any such credit note and claimed that the documents presented by the Corporate Debtor were fabricated.

## Facts

Sri Saravana Mills Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Sakthi Ganesh Textiles Private Limited (Corporate Debtor) for a debt of Rs. 6,00,001/- with a default date of 02.08.2018. The Operational Creditor claimed to have issued a demand notice on 27.06.2019, received by the Corporate Debtor on 29.06.2019. The Corporate Debtor responded on 01.07.2019, asserting a credit note dated 06.07.2018 had been issued by the Operational Creditor's Deputy General Manager. The Operational Creditor refuted this, stating the credit note and balance confirmation were fabricated and no such position as 'Deputy General Manager' existed. The Operational Creditor's letter dated

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## Issues and analysis

### Issue 1: Whether there exists a 'dispute' between the parties in relation to the amount claimed by the …

**Ratio:** The Hon'ble Supreme Court in 'Mobilox Innovations Pvt. Ltd.' Vs. 'Kirusa Software Pvt.

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**Reasoning:** The Adjudicating Authority observed that the Corporate Debtor had sent copies of a Credit

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**Interpretation:** The interpretation of 'dispute' under the IBC, as clarified by the Supreme

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**Application:** In this case, the Corporate Debtor's claim of a credit note issued by the

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** M/s. Sri Saravana…
- **Respondents:** M/s. Sakthi…

## Timeline

- **2018-08-02 — Date of D…**: The Operational Creditor claimed…
- **2019-06-27 — Demand Notice…**: The Operational Creditor issued a Demand Notice under section 8 of the Insolvency and…

## 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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