# In the matter of SSMP Industries Ltd. Vs Perkan Food Processor Pvt. Ltd CS (COMM) 470 -2016 & 73-2017

> HC judgment dated 2019-07-18. Citation: TCN-2019-HC-00013. SSMP Industries Ltd. filed a suit against Perkan Food Processors Pvt. Ltd. seeking recovery of…

- **Court:** HC
- **Order date:** 18 Jul 2019
- **Citation:** TCN-2019-HC-00013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/ssmp-industries-ltd-vs-perkan-food-processor-pvt-ltd-cs-4dc72ad7

## Summary

### Background

SSMP Industries Ltd. filed a suit against Perkan Food Processors Pvt. Ltd. seeking recovery of Rs.1,61,47,336.44 for purchase of Totapari Mango pulp. Perkan Food Processors Pvt. Ltd. filed a counter claim to recover Rs.59,51,548/- from SSMP Industries Ltd. The Plaintiff company has since gone into insolvency and a Resolution Professional has been appointed. The issue is whether the adjudication of the counter claim would be liable to be stayed in view of Section 14 of the Insolvency and Bankruptcy Code, 2016.

## Facts

SSMP Industries Ltd. (Plaintiff) filed a suit against Perkan Food Processors Pvt. Ltd. (Defendant) seeking recovery of Rs.1,61,47,336.44 for the purchase of Totapari Mango pulp. The Plaintiff claims that an agreement was entered into, supplies were made, and various amounts are due towards excess payments, damages, and other costs. The Defendant filed a written statement/counter claim, asserting entitlement to recover Rs.59,51,548/- from the Plaintiff, claiming no amount is due to the Plaintiff. The Plaintiff company has since gone into insolvency, and a Resolution Professional has been appointed. The Defendant's counsel argues that their claim is a set-off intertwined with the Plaintiff's suit and should be adjudicated in light of the Plaintiff's claims. The

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## Issues and analysis

### Issue 1: Whether the adjudication of the counter claim would be liable to be stayed in view of Section 14 of …

**Ratio:** Section 14(1)(a) of the Insolvency and Bankruptcy Code, 2016, imposes a moratorium on the

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**Reasoning:** The court reasoned that the counter claim is integral to the recovery sought by the

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**Interpretation:** The court interpreted Section 14(1)(a) of the Insolvency and Bankruptcy Code,

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** PRATHIBA M.…
- **Respondents:** SSMP INDUSTRIES…; PERKAN FOOD…

## Timeline

- **2019-07-18 — Date of De…**: The High Court of Delhi…
- **2016-01-01 — CS (COMM) 4…**: Filing of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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