# In the matter of Zhejiang Industrial Group Co. Ltd. vs. Al Badr Seafoods Private Limited

> NCLAT judgment dated 2023-08-28. Citation: TCN-2023-NCLAT-00245. Zhejiang Industrial Group Co. Ltd. filed a Company Appeal (AT) (CH) (INS.) No. 272 of 2023…

- **Court:** NCLAT
- **Order date:** 28 Aug 2023
- **Citation:** TCN-2023-NCLAT-00245
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/zhejiang-industrial-group-co-ltd-vs-al-badr-seafoods-private-limited-c1f2c650

## Summary

### Background

Zhejiang Industrial Group Co. Ltd. filed a Company Appeal (AT) (CH) (INS.) No. 272 of 2023 against an order dated 03.05.2023 passed by the National Company Law Tribunal (NCLT), Kochi Bench, which dismissed their petition. The appeal arises from a dispute over the non-payment of dues related to a settlement agreement. The appellant, an operational creditor, claimed that the corporate debtor, Al Badr Seafoods Private Limited, failed to adhere to the agreed payment terms. The NCLT dismissed the petition, citing issues with the date of default and the nature of the debt after the settlement agreement.

## Facts

Zhejiang Industrial Group Co. Ltd. (the Appellant/Operational Creditor) supplied frozen precooked skipjack tuna loins to Al Badr Seafoods Private Limited (the Corporate Debtor). Sales contracts were entered into between the parties in 2019. The goods were shipped to Tunisia. Disputes arose regarding payment, leading to a settlement agreement dated 16.07.2020 between the Operational Creditor, Al Badr Sarl (a Tunisian entity and associate enterprise of the Corporate Debtor), and the Corporate Debtor. As per the settlement agreement, Al Badr Sarl was to pay USD 1 million in ten equal installments, with the Corporate Debtor acting as guarantor. Al Badr Sarl failed to adhere to the payment schedule. The Appellant issued a demand notice on 30.04.2021 under Section 8(1) of

…

## Issues and analysis

### Issue 1: Whether the NCLT erred in dismissing the petition …

**Ratio:** The NCLT's decision was based on the incorrect date of default and the applicability of

…

**Reasoning:** The appellate tribunal reasoned that the date of default fell within the suspended period

…

**Interpretation:** Section 10A of the IBC was interpreted to mean that no petition can be filed

…

**Application:** The appellate tribunal applied the ratio and reasoning to the specific facts of

…

## Parties

- **Judges:** M. Venu…; Alok Sriv…
- **Appellants:** Zhejiang Industria…
- **Respondents:** Al Badr Seafoods…

## Timeline

- **2019-05-24 — Sales Con…**: Sales Contract No. XYLDE19018 was entered into between the Appellant and the Corporate…
- **2019-06-26 — Sales Con…**: Sales Contract No. XYLDE19023 was entered into between the Appellant and the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/zhejiang-industrial-group-co-ltd-vs-al-badr-seafoods-private-limited-c1f2c650