# In the matter of VICOTEX FABRICS PRIVATE LIMITED

> NCLT judgment dated 2025-06-30. Citation: TCN-2025-NCLT-00758. The case involves an application filed by Mangal Yadav, an operational creditor, under Section…

- **Court:** NCLT
- **Order date:** 30 Jun 2025
- **Citation:** TCN-2025-NCLT-00758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vicotex-fabrics-private-limited-658a7780

## Summary

### Background

The case involves an application filed by Mangal Yadav, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Vicotex Fabrics Private Limited, the corporate debtor, due to unpaid operational debt.

## Facts

Mangal Yadav, an operational creditor, filed an application under Section 9 of the IBC to initiate CIRP against Vicotex Fabrics Private Limited.

The applicant claimed a default amount of Rs. 1,35,96,337/- including principal and interest.

The date of default was mentioned as 22.04.2024, being the due date for the last invoice.

The corporate debtor acknowledged the debt but cited financial difficulties due to the Covid-19 pandemic.

The corporate debtor had proposed a one-time settlement (OTS) of Rs. 70 lakhs, which was declined by the applicant.

The Tribunal found no pre-existing dispute between the parties regarding the operational debt.

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## Issues and analysis

### Issue 1: Whether the application under …

**Ratio:** The application is maintainable if the operational debt exceeds the threshold limit,

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**Reasoning:** The Tribunal found that the operational debt exceeded the threshold limit, there was no

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

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**Application:** The Tribunal applied Section 9 and

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## Parties

- **Judges:** SAMEER…; NILESH S…
- **Appellants:** Mangal…
- **Respondents:** Vicotex Fabrics…
- **Other parties:** sdfdf…
- **Advocates:** CS Mr. Nithish…; CS Mr. Vijaykumar…; +2 more

## Timeline

- **2024-12-03 — Application…**: Application bearing C.P. (IB)…
- **2024-04-22 — Date of D…**: Date of default mentioned as 22.04.2024,…

## 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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