# In the matter of Advance Nath Agri Chemicals Private Limited TP-MP-100 of 2019 {CP (IB) 542 of 2018}

> NCLT judgment dated 2020-12-15. Citation: TCN-2020-NCLT-00084. The case pertains to an application filed by Astec Lifescience Ltd., the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 15 Dec 2020
- **Citation:** TCN-2020-NCLT-00084
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/advance-nath-agri-chemicals-private-limited-tp-mp-100-of-2019-cp-ib-542-of-2018-8bed048f

## Summary

### Background

The case pertains to an application filed by Astec Lifescience Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Advance Nath Agri Chemicals Pvt. Ltd, the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods supplied pursuant to purchase orders. The original application was dismissed due to lack of proof of service of demand notice, after which a fresh demand notice was served.

## Facts

Astec Lifescience Ltd., the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Advance Nath Agri Chemicals Pvt. Ltd, the Corporate Debtor. The Operational Creditor supplied goods to the Corporate Debtor based on purchase orders issued on 24.03.2017, 06.04.2017, and 30.03.2017. Payments were not made, and cheques issued by the Corporate Debtor bounced, leading to a complaint under Section 138 of the Negotiable Instruments Act. A notice under Section 8 of the IB Code, 2016, was delivered on 20.02.2018 and received by the Corporate Debtor on 23.02.2018. The initial application was dismissed due to lack of proof of service of demand notice, after which a fresh demand notice was served on

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Adjudicating Authority observed that the application was complete and defect-free,

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the

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**Application:** The application was deemed admissible because the Operational Creditor

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Astec Lifescience…
- **Respondents:** Advance Nath Agri…

## Timeline

- **2017-03-24 — Purchase Orde…**: Operational Creditor issued…
- **2017-04-06 — Purchase Orde…**: Operational Creditor issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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