M/s. Velavan Textiles, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Sri Karthikeya Spinning and Weaving Mills Private Limited, the corporate debtor. The operational creditor supplied Polyester Staple Fiber (PSF) to the corporate debtor from 2014 to 2018. Disputes arose regarding the quality of the supplied PSF, with the corporate debtor alleging defects. The operational creditor claimed that payments were not made as per the agreed terms, leading to a default exceeding Rs. 1 Crore.
M/s. Velavan Textiles (Operational Creditor) supplied Polyester Staple Fiber (PSF) to M/s. Sri Karthikeya Spinning and Weaving Mills Private Limited (Corporate Debtor) from 2014 to 2018. The terms included a 20-day credit period, with a 16% per annum interest on outstanding invoices. Payments were initially regular but later defaulted. The last supply was on 2018-11-20 for Rs. 6,24,621, and the last payment was on 2019-01-21, amounting to Rs. 3,34,366.40. The Corporate Debtor issued cheques for Rs. 49,50,000 each (total Rs. 1,48,00,000) on 2020-12-01, which were dishonored due to insufficient funds. The Operational Creditor sent legal notices on 2020-12-17. The Corporate Debtor claimed the PSF was of inferior quality, manufactured by Indorama Synthetics, leading to
…Sign in to view the parties.
Operational Creditor…
Operational Creditor…
M/s. Velavan Textiles, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Sri Karthikeya Spinning and Weaving Mills Private Limited, the corporate debtor. The operational creditor supplied Polyester Staple Fiber (PSF) to the corporate debtor from 2014 to 2018. Disputes arose regarding the quality of the supplied PSF, with the corporate debtor alleging defects. The operational creditor claimed that payments were not made as per the agreed terms, leading to a default exceeding Rs. 1 Crore.
M/s. Velavan Textiles (Operational Creditor) supplied Polyester Staple Fiber (PSF) to M/s. Sri Karthikeya Spinning and Weaving Mills Private Limited (Corporate Debtor) from 2014 to 2018. The terms included a 20-day credit period, with a 16% per annum interest on outstanding invoices. Payments were initially regular but later defaulted. The last supply was on 2018-11-20 for Rs. 6,24,621, and the last payment was on 2019-01-21, amounting to Rs. 3,34,366.40. The Corporate Debtor issued cheques for Rs. 49,50,000 each (total Rs. 1,48,00,000) on 2020-12-01, which were dishonored due to insufficient funds. The Operational Creditor sent legal notices on 2020-12-17. The Corporate Debtor claimed the PSF was of inferior quality, manufactured by Indorama Synthetics, leading to
…Operational Creditor…
Operational Creditor…