# In the matter of Supreme Tex Mart Ltd.

> NCLT judgment dated 2025-01-02. Citation: TCN-2025-NCLT-00687. The case involves an application (CA No. 739/2019) filed by M/s Parkash Cotton Pressing…

- **Court:** NCLT
- **Order date:** 2 Jan 2025
- **Citation:** TCN-2025-NCLT-00687
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/supreme-tex-mart-ltd-623f98d0

## Summary

### Background

The case involves an application (CA No. 739/2019) filed by M/s Parkash Cotton Pressing Factory, an operational creditor, under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the release of payment of dues on account of interest accrued during the Corporate Insolvency Resolution Process (CIRP) period of M/s Supreme Tex Mart Limited, the corporate debtor. Allahabad Bank initiated CIRP against M/s Supreme Tex Mart Limited. The applicant supplied raw materials to the corporate debtor during CIRP and liquidation. The corporate debtor went into liquidation on 08.08.2018. The applicant moved CA No. 429/2018 seeking classification of its dues as CIRP costs, which was disposed of by holding that the applicant's dues have priority over the dues of any

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## Facts

M/s Parkash Cotton Pressing Factory (the Applicant) filed CA No.739/2019 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking interest on delayed payments from M/s Supreme Tex Mart Limited (the Corporate Debtor) during its CIRP and liquidation. Allahabad Bank initiated CIRP against the Corporate Debtor. The Applicant, an operational creditor, supplied raw materials to the Corporate Debtor. The Corporate Debtor went into liquidation on 08.08.2018. The Applicant's claim of Rs.3,01,90,402/- was admitted in relation to CIRP. The Corporate Debtor owed Rs.7,19,65,695/- for raw materials supplied during CIRP and Rs.3.34,48.392/- post-liquidation. The Applicant received Rs.2,00,00,000/- for CIRP supplies and Rs.1,40,00,000/- for liquidation supplies. The

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## Issues and analysis

### Issue 1: Whether the Order dated 06.12.2023 required the Liquidator to take the undertaking from the …

**Ratio:** The order dated 06.12.2023 directed the liquidator to make payments as per the amounts

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**Reasoning:** The Tribunal observed that the order dated 06.12.2023 did not specifically require the

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**Interpretation:** The interpretation of the order is that while it allowed for undertakings, it

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**Application:** The Tribunal found that the Liquidator was not explicitly required to obtain an

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## Parties

- **Judges:** Harnam Singh…; UMESH KUMAR…
- **Appellants:** Parkash Cotton…
- **Respondents:** Supreme Tex Mart…; Allahabad…

## Timeline

- **2017-09-29 — Tribunal…**: Tribunal initiated CIRP of…
- **2018-08-08 — Liquidation…**: Corporate Debtor went…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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