# M/s Garnet Veneer & Decors Limited vs. M/s Hours Overseas Pvt Ltd

> NCLT judgment dated 2026-08-12. Citation: TCN-2026-NCLT-00840. M/s Garnet Veneer & Decors Limited (Operational Creditor) filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 12 Aug 2026
- **Citation:** TCN-2026-NCLT-00840
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/ms-garnet-veneer-decors-limited-vs-ms-hours-overseas-pvt-ltd-8wjcn

## Summary

### Background

M/s Garnet Veneer & Decors Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against M/s Hours Overseas Pvt. Ltd. (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an outstanding operational debt of Rs. 1,07,75,000/- as of 28.02.2026, plus 18% interest, for the non-supply of 50,000 cotton bags despite receiving substantial advance payments. A demand notice was issued to the Corporate Debtor, which went unanswered, and no dispute was raised within the statutory period.

## Facts

M/s Garnet Veneer & Decors Ltd. (Operational Creditor) filed a petition under Section 9 of the IBC against M/s Hours Overseas Pvt. Ltd. (Corporate Debtor) on 06.04.2026.

The petition sought to initiate CIRP for an outstanding amount of Rs. 1,07,75,000/- as of 28.02.2026, plus 18% interest.

The Operational Creditor placed an order with the Corporate Debtor for the supply of 50,000 cotton bags.

The total contract value for the cotton bags was Rs. 2,60,00,000/- at a fixed price of Rs. 520/- per bag.

The Corporate Debtor issued a Proforma Invoice dated 27.10.2025 bearing No. PI/25-26/053 for Rs. 2,73,00,000/-.

The Operational Creditor issued a Purchase Order dated 11.11.2025 for the procurement of 50,000 cotton bags.

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute regarding the operational debt claimed by M/s Garnet …

**Ratio:** A pre-existing dispute, as per Mobilox Innovations Private Limited v. Kirusa Software

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**Reasoning:** The Corporate Debtor admitted the receipt of advance payments. Its defense of

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**Interpretation:** The Adjudicating Authority interpreted the legal precedent to mean that a

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**Application:** The Corporate Debtor failed to demonstrate a pre-existing dispute. Its defense

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## Parties

- **Judges:** ANUPINDER SINGH…; RAVINDRA CHATURVED…
- **Appellants:** M/s Garnet Veneer…
- **Respondents:** M/s Hours…
- **Other parties:** Shashi R…; Shivam Ag…; +1 more
- **Advocates:** Shankari…; Rajat Sriv…; +1 more

## Timeline

- **2025-10-27 — Proforma Invoi…**: Corporate Debtor issued Proforma Invoice No. PI/25-26/053 for 50,000 cotton bags…
- **2025-11-11 — Purchase Orde…**: Operational Creditor issued Purchase Order No. GV/25-26/345 for 50,000 cotton bags at the…

## 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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