In re Ervika Global Private Limited (NCLT Chandigarh)
Summary: The National Company Law Tribunal, Chandigarh Bench (Court-I), admitted the Section 9 insolvency petition filed by M/s. Knitscraft Textile LLP against M/s. Ervika Global Private Limited, holding that the operational debt and default were established, the statutory threshold was satisfied, and the Corporate Debtor had failed to establish any genuine pre-existing dispute.
The Operational Creditor was engaged in manufacturing and trading garments. During 2023 and 2024, the Corporate Debtor placed purchase orders for supply of garments/clothes to Myntra Jabong Private Limited/Flipkart. According to the Operational Creditor, the goods were supplied satisfactorily and tax invoices were raised. The parties maintained a running account and the Corporate Debtor made part payments, but no payment was received after 13.06.2024. The Operational Creditor claimed outstanding principal dues of Rs. 1,65,47,709/- together with contractual interest.
The Operational Creditor relied upon purchase orders, invoices, ledger accounts, communications, cheques issued towards outstanding dues and a Memorandum of Understanding acknowledging liability. The order refers to the MOU as dated 24.09.2024 in paragraph 2(b), while paragraphs 7 and 10 refer to it as dated 27.09.2024. The Tribunal noted that under the MOU the Corporate Debtor acknowledged an outstanding amount of Rs.1,07,15,312/-, itself exceeding the Rs.1 Crore threshold prescribed under Section 4 of the Insolvency and Bankruptcy Code, 2016.
