# In the matter of Awsum Proteins Ltd. Company Petition No. (IB)-2012(ND)-2019

> NCLT judgment dated 2020-03-03. Citation: TCN-2020-NCLT-01698. Amit Verma, the operational creditor, filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 3 Mar 2020
- **Citation:** TCN-2020-NCLT-01698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/awsum-proteins-ltd-company-petition-no-ib-2012nd-2019-98cea458

## Summary

### Background

Amit Verma, the operational creditor, filed an application 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, for initiating the Corporate Insolvency Resolution Process (CIRP) against Awsum Proteins Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted in making payments for services rendered. The corporate debtor acknowledged the outstanding debt but expressed an inability to pay due to financial difficulties.

## Facts

Amit Verma, an operational creditor, was appointed as 'Sr. Manager-finance & Accounts' in Awsum Proteins Limited on 01.07.2017 with a cost to company of Rs. 15,00,000 per annum. The corporate debtor, Awsum Proteins Limited, defaulted in making payments for services rendered by Amit Verma. The total outstanding debt was Rs. 14,00,000. A demand notice was sent by the operational creditor on 14.06.2019 for Rs. 15,89,000, including principal and interest. The corporate debtor acknowledged the debt but expressed inability to pay due to financial difficulties. The corporate debtor did not dispute the claim. The application under Section 9 of the IBC was filed in Form-5, mentioning the admission of debt and default by the corporate debtor. The default amount exceeded Rs.

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the …

**Ratio:** Section 9 of the IBC outlines the requirements for an operational creditor to initiate

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**Reasoning:** The court found that the operational creditor's application was complete in all respects.

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the court applied the provisions of Section 9 to the facts

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** Amit V…
- **Respondents:** Awsum Proteins…

## Timeline

- **2017-07-01 — Appointment of…**: Amit Verma was appointed as 'Sr.…
- **2018-11-01 — Default Oc…**: The Corporate Debtor defaulted in making…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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