# In the matter of Amira Pure Foods Pvt. Ltd. CP No. (IB)-211 (ND)-2017

> NCLT judgment dated 2017-08-24. Citation: TCN-2017-NCLT-00524. M Y Agro Pvt. Ltd., the operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 24 Aug 2017
- **Citation:** TCN-2017-NCLT-00524
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/amira-pure-foods-pvt-ltd-cp-no-ib-211-nd-2017-98c5b62e

## Summary

### Background

M Y Agro Pvt. Ltd., the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against Amira Pure Foods Pvt. Ltd., the corporate debtor. The operational creditor claimed that it supplied rice and paddy to the corporate debtor from February 2015 to July 2015, amounting to Rs. 37,21,60,517/-, but received only Rs. 33,85,43,883/-, leaving an outstanding amount of Rs. 33,616,634/-. Despite reminders, the corporate debtor failed to repay the outstanding amount. The operational creditor issued a demand notice dated 10.06.2017 under Section 8 of the Code. The corporate debtor contended that the demand notice was defective and that an oral settlement was

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## Facts

M Y Agro Pvt. Ltd. (Operational Creditor) supplied rice and paddy to Amira Pure Foods Pvt. Ltd. (Corporate Debtor) from February 2015 to July 2015, totaling Rs. 37,21,60,517/-. The Corporate Debtor paid Rs. 33,85,43,883/-, leaving an unpaid amount of Rs. 33,616,634/-. The Operational Creditor issued a demand notice dated 10.06.2017 under Section 8 of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor claimed the demand notice was defective and alleged an oral settlement where payments would be made to S.K.K. Agro Private Limited. The Operational Creditor denied any relationship with S.K.K. Agro Private Limited and stated that no authorization was given to collect payments on its behalf. The Corporate Debtor failed to provide documentary evidence of the

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## Issues and analysis

### Issue 1: Whether the demand notice issued by the operational creditor under Section 8 of the Insolvency and …

**Ratio:** Section 8 of the Insolvency and Bankruptcy Code requires the operational creditor to

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**Reasoning:** The court found that the demand notice was served to the corporate debtor. The court

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**Interpretation:** The court interpreted Section 8 to require proper service of the demand notice

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**Application:** The court applied the ratio to the facts, finding that the demand notice was

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## Parties

- **Judges:** Ina Mal…; S. K. MOH…
- **Appellants:** M Y Agro Pv…
- **Respondents:** Amira Pure Foods…

## Timeline

- **2015-02-01 — Business Transactions…**: M Y Agro Pvt. Ltd. entered into business transactions with Amira Pure Foods Pvt. Ltd. for…
- **2015-07-01 — Business Transactions…**: M Y Agro Pvt. Ltd. supplied rice and paddy to…

## 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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