# In the matter of WEST BENGAL AGRO TEXTILE CORPORATION LTD

> NCLT judgment dated 2025-08-22. Citation: TCN-2025-NCLT-01235. The case involves an application filed by Jitendra Jain, an Operational Creditor, under Section…

- **Court:** NCLT
- **Order date:** 22 Aug 2025
- **Citation:** TCN-2025-NCLT-01235
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/west-bengal-agro-textile-corporation-ltd-35befb26

## Summary

### Background

The case involves an application filed by Jitendra Jain, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against West Bengal Agro Textiles Corporation Limited, the Corporate Debtor.

## Facts

The Corporate Debtor placed several purchase orders for the supply of raw jute for jute goods production at their Unit Bharat Jute Mill, Dasnagar, Howrah.

The Operational Creditor raised invoices for the supply of goods after delivery and acceptance, issuing Mill Receipts in favor of the Operational Creditor.

The value of outstanding invoices raised by the Operational Creditor for the period 30.11.2021 to 31.12.2021 is Rs. 1,19,36,635/-.

The Corporate Debtor made part payments against MR Nos. 127, 128, and 131, totaling Rs. 21,24,637.08/-, with the last payment made on 28.02.2023.

The Corporate Debtor admitted the dues of the Operational Creditor through several letters, with the last admission on 06.03.2023.

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## Issues and analysis

### Issue 1: Whether the allegations of forgery and fraud can be decided in a summary proceeding under the …

**Ratio:** Allegations of forgery and fraud are not decided in proceedings under Sections 433 and

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**Reasoning:** The Tribunal relied on the decisions of the Hon'ble Supreme Court in Radha Exports

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**Interpretation:** The Adjudicating Authority cannot adjudicate on the allegations of forgery and

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**Application:** The Adjudicating Authority did not delve into the allegations of forgery and

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## Parties

- **Judges:** BIDISHA BA…; Cmde Siddharth…
- **Appellants:** Jitendra…
- **Respondents:** West Bengal Agro…
- **Other parties:** Pratap Muk…
- **Advocates:** Arti Ag…; Udit Ag…; +5 more

## Timeline

- **2021-11-30 — Invoice Perio…**: Start date of the period for which outstanding invoices were raised by the Operational…
- **2021-12-31 — Invoice Per…**: End date of the period for which outstanding invoices were raised by the Operational…

## 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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