# In the matter of Agson Global Private Limited

> NCLT judgment dated 7 Dec 2023. Citation: TCN-2023-NCLT-00374. The case originated from an application filed by Agson Global Private Limited (Corporate…

- **Court:** NCLT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLT-00374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/agson-global-private-limited-841a5fd3

## Summary

### Background

The case originated from an application filed by Agson Global Private Limited (Corporate Debtor) under Rule 11 of the NCLT Rules, 2016. The Corporate Debtor sought to place on record a Settlement Agreement reached with Prodalim B.V. (Operational Creditor) and consequently requested the dismissal of the main petition, CP IB – 535 (ND) 2022, which was an application filed by the Operational Creditor under Section 9 of the IBC, 2016. The main petition concerned an alleged default by the Corporate Debtor in making payments for D-Limonene supplied by the Operational Creditor.

## Facts

Prodalim B.V., the Operational Creditor, is a company based in the Netherlands and part of the Prodalim Group, a global player in the beverage and seasoning industries. Agson Global Private Limited, the Corporate Debtor, is based in New Delhi and manufactures chemical derivatives of menthol and other allied chemicals. The Corporate Debtor placed an order with the Operational Creditor for D-Limonene, a product extracted from citrus fruits, for its business requirements.

## Issues and analysis

### Issue 1: Whether a debt arising from the breach of a Settlement Agreement constitutes 'Operational Debt'…

**Ratio:** A breach of the terms of a Settlement Agreement, even if the original underlying debt was…

**Reasoning:** The court reasoned that for a debt to be considered 'operational debt' under the IBC, it…

**Interpretation:** The court interpreted **Section 5(21)** of the IBC strictly, holding that…

**Application:** In this case, the Corporate Debtor defaulted on the third installment of a…

## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Advocates:** For the Applicant:…; For the Respondent…

## Timeline

- **March 9, 2021 — Sales Con…**: The Corporate Debtor entered into a sales contract with the Operational Creditor for the…
- **October 5, 2021 — Default Calcula…**: The principal sum in default was calculated as USD 211,668 (equivalent to INR…

## 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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