# In the matter of Bangs Resto Ventures Private Limited CP-645-(IB)-CB-2018

> NCLT judgment dated 2018-07-25. Citation: TCN-2018-NCLT-01070. The case involves an application filed by Godrej Tyson Foods Limited, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 25 Jul 2018
- **Citation:** TCN-2018-NCLT-01070
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bangs-resto-ventures-private-limited-cp-645-ib-cb-2018-ada8f140

## Summary

### Background

The case involves an application filed by Godrej Tyson Foods Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Bangs Resto Ventures Private Limited, the Corporate Debtor. The application seeks to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for defaulting on payments. The Operational Creditor and Corporate Debtor entered into a Memorandum of Understanding (MoU) dated 15.07.2014 for the sale of marinated chicken products by the Operational Creditor to the Corporate Debtor. The Operational Creditor claimed an outstanding debt of Rs.43,17,724/-, inclusive of interest at 18% calculated from 20.12.2014 to 31.03.2018.

## Facts

Godrej Tyson Foods Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Bangs Resto Ventures Private Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and Corporate Debtor entered into a Memorandum of Understanding (MoU) dated 15.07.2014 for the sale of marinated chicken products. As per the MoU, the Corporate Debtor was to supply Marinate Powder to the Operational Creditor, who would then prepare and supply the finished product back to the Corporate Debtor. The Corporate Debtor defaulted on payments, leading to an outstanding debt of Rs.43,17,724/-, inclusive of interest at 18% calculated from 20.12.2014 to 31.03.2018. The Operational

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

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

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**Reasoning:** The court observed that the Operational Creditor had complied with Section 9 (3) (b)

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**Interpretation:** Section 9 of the IBC provides the requirements for an operational creditor to

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**Application:** The Operational Creditor had fulfilled all the requirements of law for

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** Godrej Tyson…
- **Respondents:** Bangs Resto…

## Timeline

- **2014-07-15 — MoU Date…**: Memorandum of Understanding (MoU) between Godrej Tyson Foods Limited and Bangs Resto…
- **2014-12-20 — Interest Calculation…**: Start date for calculating…

## 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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