Back
2025 Supreme(Online)(NCLT) 7914
NATIONAL COMPANY LAW TRIBUNAL
SHRI JYOTI KUMAR TRIPATI, MEMBER (JUDICIAL), SHRI RAVICHANDRAN RAMASAMY, MEMBER (TECHNICAL)
Mrs Parthiban Uma Sankari – Appellant
Versus
KG Denim Limited – Respondent
Company Petition CP (IB) / 222 (CHE) / 2023
For Petitioners:- Gokula Krishnan Kalpana, Deepan Chakravathi, Tejaswini Sivaprakasam
For Respondent:- B.Dhanaraj, K.Parvathi, Deepa Mariappan, Mohammed Umar.K, Sangamithra Loganathan, Abinaya.R.M, Jithin George Jackson.K
The insolvency petition was admitted as the operational debt exceeded the threshold without any pre-existing dispute.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 9 - Petition filed for initiation of Corporate Insolvency Resolution Process - Amount of outstanding debt Rs. 1,12,37,091/- constituted by materials supplied and interest - No dispute raised by Corporate Debtor regarding the outstanding dues - Petition admitted as per criteria laid down in law. (Paras 10-14)
(B) Applicability of Moratorium - If petition is admitted under IBC, a moratorium is applicable which prohibits institution of suits or continuation of suits against Corporate Debtor - Moratorium effect, as established under the Code, is explained in detail. (Paras 16-18)
Facts of the case:
The Operational Creditor filed a petition for initiating the Corporate Insolvency Resolution Process against the Corporate Debtor claiming outstanding operational debt with supporting invoices, which the Corporate Debtor failed to dispute adequately. The petition was filed within the three-year limit from the debt default date.
Findings of Court:
The Tribunal found no documents showing that the Corporate Debtor disputed the debt. The petition was admitted under Section 9(5) due to default and no pre-existing dispute.
Issues: The Court addressed whether the required criteria for admitting the petition were met, focusing on the matter of operational debt and the absence of dispute.
Ratio Decidendi: It was held that if there is a debt and default, with no dispute, the application under IBC must be admitted as prescribed by law. The Court is to consider facts that genuinely indicate a failure to pay.
Result: Petition admitted and CIRP initiated.
| Table of Content |
|---|
| 1. petition filed under ibc for initiation of cirp. (Para 1 , 2 , 3) |
| 2. claims of operational debt and acknowledgment by corporate debtor. (Para 5 , 7 , 8) |
| 3. petition admissibility criteria met; no dispute shown. (Para 10 , 12) |
| 4. moratorium effects and responsibilities under ibc. (Para 14 , 16) |
| 5. final decision to allow the petition and initiate cirp. (Para 20 , 21) |
(Heard Through Hybrid Mode)
1. This Petition has been filed under Section 9 of the Insolvency and Bankruptcy code, 2016 (“IBC”) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 by Mrs Parthiban Uma Sankari, Proprietor of Saitech Systems, (hereinafter referred to as ‘Operational Creditor’) seeking to initiate Corporate Insolvency Resolution Process against KG Denim Limited (hereinafter referred to as ‘Corporate Debtor’).
2. Part-I of the Petition sets out of the details of the Operational Creditor. It is averred that the M/s Saitech Systems, incorporated on 07.03.2018, is engaged in the business of supply of saw dust which is used as fuel in various industries for the purpose of operating and running boilers and other equipments, which is represented by Parthiban Uma Sankari with its office situated at 25b, Chitra Nagar, Amman Kovil Bus Stop, Saravanampatti, Coimbatore – 641 035.
3. Part-II of the Petition sets out the details of the Corporate Debtor, KG Denim Limited, with Identification No. L17115TZ1992PLC003798, incorporated on 25.06.1992, with an authorized Share Capital of Rs. 41,00,00,000/- and the Paid-up Share Capital of Rs. 25,63,78,250/- having its registered office at the then Thirumalai, Jadayampalayam(PO), Mettupalayam, Coimbatore – 641 035.
4. In Part-III of the Petition the Operational Creditor has not proposed any Insolvency Professional to act as a Resolution Professional and therefore, prayed the Tribunal to make a reference to the board for appointment of Interim Resolution professional.
5. Part-IV of the Petition states that the total outstanding Debt is Rs. 1,12,37,091/- (Rupees One Crore Twelve Lakhs Thirty Seven Thousand and Ninety One Only), out if which Rs. 78,41,414/- (Seventy Eight Lakhs Forty One Thousand Four Hundred and Fourteen Only) payable for materials supplied and Rs. 33,95,677/- (Rupees Thirty Three Lakhs Ninety Five Thousand Six Hundred and Seventy Seven Only) is payable towards the interest at a rate of 16.75% p.a.
6. Part-V of the Petition describes the particulars of the Operational Debt, documents, records and evidence of the default as below: Invoices relating to the Purchases reflexing the pending dues pertaining to 314 invoices as attached in Annexure-II (3) and the same are legally enforceable under the provisions of Indian Contract Act, 1872 . Details of Bank accounts of the Operational Creditor and details of the last date of receipt of payment from the Corporate Debtor, Copy of Demand Notice sent to the Corporate Debtor along with the Acknowledgement of receipt and postal tracking of the same, attached under Annexure-I.
PAN and OST Registration certificate of the Operational Creditor, as attached under Annexure-II (1).
Copy of Master Data of the Corporate Debtor as per MCA, as attached under Annexure-I (2)
Copy of the MSME certificate of M/& Saitech System, as attached under Annexure-II (3).
Copy of Invoices raised by the Operational Creditor to the Corporate Debtor as attached under Annexure-II (4).
A copy of the GSTR-1 filed by the Operational Creditor as attached under Annexure-II (5).
A copy of the GSTR-3B filed by the Operational Creditor as attached under Annexure-II (6). Working Computation as attached under Annexure-II (7).
7. OPERATIONAL CREDITORS SUBMISSIONS:
7.1 It is submitted that the total outstanding Debt is Rs. 1,12,37,091/- (Rupees One Crore Twelve Lakhs Thirty Seven Thousand and Ninety One Only), out if which Rs. 78,41,414/- (Seventy Eight Lakhs Forty One Thousand Four Hundred and Fourteen Only) payable for materials supp
