# In the matter of Agrimas Chemicals Limited CP (IB)1837-MB-C-IV-2019

> NCLT judgment dated 2021-11-15. Citation: TCN-2021-NCLT-00498. Grow Max India Private Limited, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 15 Nov 2021
- **Citation:** TCN-2021-NCLT-00498
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/agrimas-chemicals-limited-cp-ib1837-mb-c-iv-2019-3b2454b1

## Summary

### Background

Grow Max India Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Agrimas Chemicals Limited, the Corporate Debtor. The Operational Creditor claimed a sum of Rs.26,50,927/-, inclusive of interest @18% p.a., which was said to be in default as of 08.01.2018. The Corporate Debtor is a limited Company incorporated on 03.07.1973 under the Companies Act, 1956. The Corporate Debtor denied the liability, claiming that the Petitioner supplied excess quantities of goods and defective quality products, causing financial losses. The Petitioner refuted these claims, stating that the Corporate Debtor admitted the liability in an email

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## Facts

Grow Max India Private Limited (Operational Creditor) filed a petition against Agrimas Chemicals Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming a default of Rs. 26,50,927/- inclusive of interest as of 08.01.2018. The Corporate Debtor purchased materials worth Rs. 22,40,820/- from the Petitioner between January and February 2018, for which the Petitioner issued invoices. The Petitioner issued a Demand Notice on 15.02.2019, which the Corporate Debtor replied to on 01.03.2019 and 13.03.2019, denying the liability. The Corporate Debtor claimed that the Petitioner supplied excess quantities of goods and defective quality products, causing financial losses of more than Rs. 30 lakhs. The Corporate Debtor also contended that

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

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

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**Reasoning:** The NCLT was satisfied that the application filed by the Operational Creditor was in

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

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**Application:** The NCLT found that the application met the requirements of Section 9, as the

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## Parties

- **Judges:** RAJESH S…; SUCHITRAKAN…
- **Appellants:** Grow Max India…
- **Respondents:** Agrimas Chemicals…

## Timeline

- **1973-07-03 — Incorporation of…**: Agrimas Chemicals Limited…
- **2018-01-08 — Default…**: The date on which the default…

## 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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