# In the matter of Sri Srinivasa Spin Tex (India) Limited CP (IB) No. 78-9-AMR-2021

> NCLT judgment dated 2022-08-17. Citation: TCN-2022-NCLT-01346. The case involves a petition filed by M/s. Gayatri Cotton Pressing Mills Private Limited…

- **Court:** NCLT
- **Order date:** 17 Aug 2022
- **Citation:** TCN-2022-NCLT-01346
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sri-srinivasa-spin-tex-india-limited-cp-ib-no-78-9-amr-2021-a1fbe6e8

## Summary

### Background

The case involves a petition filed by M/s. Gayatri Cotton Pressing Mills Private Limited (Operational Creditor) against Sri Srinivasa Spin Tex (India) Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to a default of Rs. 1,09,68,956/-. The Corporate Debtor had approached the Operational Creditor for the supply of Cotton Lint in July 2018, and invoices were raised. The last invoice was raised on 24.07.2018. The Corporate Debtor made payments on a running account basis, with the last payment on 19.12.2018. The Operational Creditor claimed that the Corporate Debtor failed to pay the outstanding amount despite follow-ups. The Corporate Debtor raised objections,

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## Facts

M/s. Gayatri Cotton Pressing Mills Private Limited (Operational Creditor) filed a petition against M/s. Sri Srinivasa Spin Tex (India) Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP. The Corporate Debtor defaulted on a payment of Rs. 1,09,68,956/-. In July 2018, the Corporate Debtor approached the Operational Creditor for the supply of Cotton Lint. The last invoice was raised on 24.07.2018. The Corporate Debtor made payments on a running account basis until 19.12.2018. The Operational Creditor claimed that the Corporate Debtor failed to pay the outstanding amount despite follow-ups. The Operational Creditor raised invoices totaling Rs. 1,29,03,984/-, against which the Corporate Debtor paid Rs.

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** The petition is maintainable if it meets the requirements of Section 9 of the IBC,

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**Reasoning:** The court considered the arguments from both sides and the evidence presented, including

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

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**Application:** The court found that the Operational Creditor had established the existence of

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** Gayatri Cotton…
- **Respondents:** Srinivasa Spin…

## Timeline

- **2018-07-01 — Corporate Debtor…**: The Corporate Debtor approached the…
- **2018-07-24 — Last Invoice…**: The last invoice for the supply of…

## 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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