JUDGMENT in C.P. (IB) No. 81/Chd/Pb/2023

2. The present petition is filed by Duke Fabrics (India) Limited (for brevity, “Operational Creditor”) under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Sadan Hosiery Private Limited (for brevity, “Corporate Debtor”) seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor, on account of default in pa yment of the Operational Debt.

3. It is averred that:

3.1.The Operational Creditor is a company registered under the provisions of the Company Act, 1956, and is engaged in the business of manufacturing, processing, dyeing, and finishing of knitted cloth and yarn.

3.2. The Corporate Debtor is a company incorporated under the Companies Act, 1956, and is engaged in the business of manufacturing knitted clothes.

3.3. The Operational Creditor had supplied fabrics and dyed fabrics on job- work basis to the Corporate Debtor for the period of 18.03.2021 to 09.12.2021 and invoices were issued with a credit period of 30 days and the Corporate Debtor failed to make the payment against the invoices even after the due credit period.

3.4. The Operational Creditor issued demand notice on 07.01.2023, calling upon