Nimbark Fashions Ltd, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Soundararaja Mills Ltd, the corporate debtor, due to unpaid operational debt.
Nimbark Fashions Ltd supplied raw materials (fibre) to Soundararaja Mills Ltd for processing into yarn under a Buyback Agreement dated 01.07.2021.
The operational debt claimed by Nimbark Fashions Ltd is Rs. 5,34,55,340/- with the date of default as 16.04.2023.
Nimbark Fashions Ltd issued a demand notice under Section 8 of IBC to Soundararaja Mills Ltd on 13.01.2024.
Soundararaja Mills Ltd claimed that Nimbark Fashions Ltd owed them Rs. 8,40,84,840.87 for finished goods supplied.
Soundararaja Mills Ltd initiated arbitration proceedings after receiving the demand notice from Nimbark Fashions Ltd.
The Corporate Debtor admitted to a balance of Rs.4,76,73,667/- as on 31.03.2023.
Nimbark Fashions Ltd also provided a working capital of Rs.95,50,095/- to Soundararaja Mills Ltd.
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Nimbark Fashions Ltd…
The first invoice which came to be in default…
Nimbark Fashions Ltd, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Soundararaja Mills Ltd, the corporate debtor, due to unpaid operational debt.
Nimbark Fashions Ltd supplied raw materials (fibre) to Soundararaja Mills Ltd for processing into yarn under a Buyback Agreement dated 01.07.2021.
The operational debt claimed by Nimbark Fashions Ltd is Rs. 5,34,55,340/- with the date of default as 16.04.2023.
Nimbark Fashions Ltd issued a demand notice under Section 8 of IBC to Soundararaja Mills Ltd on 13.01.2024.
Soundararaja Mills Ltd claimed that Nimbark Fashions Ltd owed them Rs. 8,40,84,840.87 for finished goods supplied.
Soundararaja Mills Ltd initiated arbitration proceedings after receiving the demand notice from Nimbark Fashions Ltd.
The Corporate Debtor admitted to a balance of Rs.4,76,73,667/- as on 31.03.2023.
Nimbark Fashions Ltd also provided a working capital of Rs.95,50,095/- to Soundararaja Mills Ltd.
…Nimbark Fashions Ltd…
The first invoice which came to be in default…