# 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-00076. The case involves an application filed by Astec Lifescience Ltd., the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 15 Dec 2020
- **Citation:** TCN-2020-NCLT-00076
- **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-e9c2ecad

## Summary

### Background

The case involves an application filed by Astec Lifescience Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate 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 for want 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 for these supplies 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. An initial application was dismissed due to lack of proof of service of demand notice, after which a fresh demand notice was

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## Issues and analysis

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

**Ratio:** An application under Section 9 is admissible if it meets the requirements of the IB Code,

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**Reasoning:** The court found that the amount of default exceeded Rs. 1 lakh and that the Corporate

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**Interpretation:** Section 9 of the IB Code allows an operational creditor to initiate CIRP if a

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**Application:** The court applied the ratio to the facts by noting the absence of any documents

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## Parties

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

## Timeline

- **2017-03-24 — Purchase Orde…**: Purchase order issued by Corporate…
- **2017-04-06 — Purchase Orde…**: Purchase order issued by Corporate…

## 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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