# In the matter of S P J Cargo Pvt. Ltd. vs. Blossom Grocery & Foods India Pvt. Ltd. Company Appeal (AT)(Insolvency) No. 1374 of 2022

> NCLAT judgment dated 2023-05-11. Citation: TCN-2023-NCLAT-00540. This is an appeal against the order dated 13.10.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 11 May 2023
- **Citation:** TCN-2023-NCLAT-00540
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/s-p-j-cargo-pvt-ltd-vs-blossom-grocery-foods-india-pvt-ltd-company-appeal-a32a3732

## Summary

### Background

This is an appeal against the order dated 13.10.2022 passed by the Adjudicating Authority (NCLT, Mumbai). The appellant, an operational creditor, filed a Section 9 application for a debt and default of Rs. 24,12,063/-. The Adjudicating Authority issued a notice on 26.02.2020 and further order on 23.03.2021 directing the Corporate Debtor to file its reply. The Corporate Debtor did not appear despite publication of notice. The Adjudicating Authority directed the Operational Creditor to deposit a Demand Draft of Rs. 5 lakhs in favor of the proposed IRP. The appellant challenges this direction, arguing that it is unnecessary since the IRP has already given consent and the Section 9 application has not yet been admitted.

## Facts

SPJ Cargo Pvt. Ltd., the appellant, is an operational creditor. Blossom Grocery & Foods India Pvt. Ltd. is the respondent. The appellant filed a Section 9 application against the respondent for a debt and default of Rs. 24,12,063/-. The Adjudicating Authority (NCLT, Mumbai) directed the appellant to deposit a Demand Draft of Rs. 5 lakhs in favor of the proposed IRP. The appellant challenged this direction, arguing that the IRP had already consented to the fees and the Section 9 application had not been admitted. The Adjudicating Authority had issued a notice on 26.02.2020 and a further order on 23.03.2021 directing the Corporate Debtor to file its reply, but the Corporate Debtor did not appear. The direction to deposit the demand draft was issued on 13.10.2022. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in directing the Appellant to deposit a Demand …

**Ratio:** A direction to deposit fees for the IRP is not warranted when the Section 9 application

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**Reasoning:** The tribunal reasoned that since the Section 9 application was still pending and had not

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**Interpretation:** The interpretation is that the Adjudicating Authority should not direct the

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

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…; +3 more
- **Appellants:** S.P.J Cargo Pvt.…
- **Respondents:** Blossom Grocery &…

## Timeline

- **2020-02-26 — Notice I…**: Adjudicating Authority…
- **2021-03-23 — Order to Fil…**: Adjudicating Authority passed an order…

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