# In the matter of Vama Wovenfab Private Limited CP (IB) 4196-MB-2019

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02422. The case involves a petition filed by Jai Corp Limited, an operational creditor, under Section…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02422
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vama-wovenfab-private-limited-cp-ib-4196-mb-2019-16428a4f

## Summary

### Background

The case involves a petition filed by Jai Corp Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Vama Wovenfab Private Limited, the corporate debtor, for failing to pay an outstanding debt. The petition was filed on 2019-11-21 before the Adjudicating Authority (AA). The corporate debtor was incorporated on 2011-03-16. The operational creditor claimed that the corporate debtor failed to pay a sum of Rs. 6,47,998 as principal amount and Rs. 1,61,901.30 as interest calculated at 24% p.a. The date of default was 2018-09-07. The operational creditor is a manufacturer, supplier, and exporter of various products, while the corporate debtor is involved in

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## Facts

Jai Corp Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Vama Wovenfab Private Limited, the corporate debtor. The petition was filed on 2019-11-21. The corporate debtor was incorporated on 2011-03-16. The operational creditor claimed that the corporate debtor failed to pay a sum of Rs. 6,47,998 as principal amount and Rs. 1,61,901.30 as interest calculated at 24% p.a., with a default date of 2018-09-07. The invoices provided for computation of interest at 24% p.a. after the due date. The operational creditor is a manufacturer, supplier, and exporter of Master Batches of Flexible Intermediate Bulk Containers, woven sacks, and fabrics.

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## Issues and analysis

### Issue 1: Whether the application made by the Operational Creditor is complete in all respects as required by …

**Ratio:** The application must meet all the requirements as stipulated under Section 9 of the IBC,

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**Reasoning:** The Adjudicating Authority found that the application made by the Operational Creditor

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**Interpretation:** Section 9 of the IBC outlines the requirements for an operational creditor to

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**Application:** The court determined that the operational creditor had provided sufficient

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## Parties

- **Judges:** P.N. Des…; K.K. V…
- **Appellants:** Jai Corp L…
- **Respondents:** Vama Wovenfab…; Vama Wovenfab Pvt…

## Timeline

- **2011-03-16 — Corporate Debtor…**: Vama Wovenfab Private…
- **2018-09-07 — Date of D…**: The Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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