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

> NCLT judgment dated 2021-11-15. Citation: TCN-2021-NCLT-00503. The case originates from a Company Petition filed under Section 9 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 15 Nov 2021
- **Citation:** TCN-2021-NCLT-00503
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/agrimas-chemicals-limited-cp-ib1837-mb-c-iv-2019-737749ad

## Summary

### Background

The case originates from a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Grow Max India Private Limited, the Operational Creditor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Agrimas Chemicals Limited, the Corporate Debtor. The Operational Creditor claims a sum of Rs. 26,50,927/- inclusive of interest @18% p.a., which is 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.

## Facts

Grow Max India Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate CIRP against Agrimas Chemicals Limited (Corporate Debtor) for unpaid dues of Rs. 26,50,927/- including interest. 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 under Section 8 of the IBC. The Corporate Debtor replied on 01.03.2019 and 13.03.2019, denying the liability. The Corporate Debtor claimed that the Petitioner supplied excess and defective quantities of goods, causing financial losses. The Corporate Debtor also contended that there was no agreement for the

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is in compliance with the provisions of …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for an

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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 of the IBC is interpreted to ensure that operational creditors have a

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**Application:** The NCLT applied the provisions of Section 9 to the facts of the case and found

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## Parties

- **Judges:** RAJESH S…; SUCHITRAKAN…
- **Appellants:** Grow Max India…
- **Respondents:** Agrimas Chemicals…
- **Advocates:** Praveen Kumar…; Darryl Pe…; +1 more

## Timeline

- **1973-07-03 — Incorporation of…**: Agrimas Chemicals Limited…
- **2018-01-01 — Date of D…**: The Operational Creditor claimed…

## 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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