# In the matter of Annamalai Foods Private Limited CP-94-(IB)-CB-2018

> NCLT judgment dated 2018-01-25. Citation: TCN-2018-NCLT-01896. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 25 Jan 2018
- **Citation:** TCN-2018-NCLT-01896
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/annamalai-foods-private-limited-cp-94-ib-cb-2018-60a048d1

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by M/s. Sree Provisions Stores (Operational Creditor) against M/s. Annamalai Foods Private Limited (Corporate Debtor). The Operational Creditor claimed an outstanding amount of Rs. 16,83,884/- for the supply of provisions to the Corporate Debtor's restaurants. The Corporate Debtor issued post-dated cheques that were dishonored. The Corporate Debtor issued a notice under Section 8 of the I&B Code, 2016, requesting more time to complete the legitimate dues.

## Facts

M/s. Sree Provisions Stores (Operational Creditor) filed an application against M/s. Annamalai Foods Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for an outstanding amount of Rs. 16,83,884/-. The Operational Creditor supplied provisions to the Corporate Debtor's restaurants based on assurances of payment. The Corporate Debtor issued five post-dated cheques, which were dishonored upon presentation. The Corporate Debtor issued a notice under Section 8 of the I&B Code, 2016, requesting an extension of time to pay the outstanding debt, acknowledging difficulty in honoring the balance. The Operational Creditor filed an affidavit stating that the Corporate Debtor did not give any notice in relation to the dispute of the

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of the outstanding debt claimed by the …

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

…

**Reasoning:** The court reasoned that the Corporate Debtor had issued dishonored cheques and admitted

…

**Interpretation:** Section 9 of the IBC is interpreted to mean that if an operational debt exists,

…

**Application:** The court applied the ratio to the facts by noting that the Corporate Debtor's

…

## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** SREE PROVISIONS…
- **Respondents:** ANNAMALAI FOODS…

## Timeline

- **2017-08-05 — Issuance of Post-Dated…**: The Corporate Debtor issued a letter enclosing five post-dated cheques to the Operational…
- **2017-10-31 — Demand Notice…**: The Corporate Debtor issued a notice under Section 8 of the I&B Code, 2016, demanding the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/annamalai-foods-private-limited-cp-94-ib-cb-2018-60a048d1