# In the matter of Badami Sugars Limited

> NCLT judgment dated 2019-01-23. Citation: TCN-2019-NCLT-05183. M/s. Sri Arumuga Sugars Ltd, an operational creditor, filed C.P.(IB) No. 43/2019 under Section…

- **Court:** NCLT
- **Order date:** 23 Jan 2019
- **Citation:** TCN-2019-NCLT-05183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/badami-sugars-limited-6012bbae

## Summary

### Background

M/s. Sri Arumuga Sugars Ltd, an operational creditor, filed C.P.(IB) No. 43/2019 under Section 7 of the I&B Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process against M/s. Badami Sugars Limited, the corporate debtor, for failing to pay a total outstanding amount of Rs. 22,84,07,970.00.

## Facts

M/s. Sri Arumuga Sugars Ltd, the operational creditor, initiated proceedings against M/s. Badami Sugars Limited, the corporate debtor, under Section 7 of the I&B Code, 2016. The operational creditor claimed that the corporate debtor failed to pay an outstanding amount of Rs. 22,84,07,970.00. The case was listed for admission on 18.01.2019 and 23.01.2019, but was adjourned at the request of the parties. The court noted that the case was not being prosecuted diligently and listed it for dismissal. On 23.01.2019, no one appeared for the parties, leading the court to conclude that the parties were not interested in prosecuting the case. This lack of prosecution led to the dismissal of the petition.

## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor should be admitted for initiating the …

**Ratio:** A petition can be dismissed for non-prosecution if the petitioner fails to diligently

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**Reasoning:** The court observed that the case was not being prosecuted diligently and that no one

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**Interpretation:** The interpretation of procedural law allows the court to dismiss a case if the

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**Application:** In this case, the operational creditor's absence and lack of diligent

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. Sri Arumuga…
- **Respondents:** M/s. Badami…

## Timeline

- **2019-01-18 — Case Listed for…**: The case was listed for…
- **2019-01-23 — Case Adjo…**: The case was adjourned at…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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