# In the matter of Blue Blends (India) Limited C.P. No. 1896-IBC-MB-2018

> NCLT judgment dated 2021-12-02. Citation: TCN-2021-NCLT-00295. The case involves a Company Petition filed by M/s Sarla Performance Fibres Limited (Operational…

- **Court:** NCLT
- **Order date:** 2 Dec 2021
- **Citation:** TCN-2021-NCLT-00295
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/blue-blends-india-limited-cp-no-1896-ibc-mb-2018-1bfd7b26

## Summary

### Background

The case involves a Company Petition filed by M/s Sarla Performance Fibres Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Blue Blends (India) Ltd. (Corporate Debtor). The Operational Creditor alleges that the Corporate Debtor defaulted in making payment of Rs. 1,60,00,000/- which was due on 30.11.2017.

## Facts

M/s Sarla Performance Fibres Limited (Operational Creditor) filed a Company Petition against M/s Blue Blends (India) Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor and Corporate Debtor entered into an agreement dated 25.09.2017, under which the Corporate Debtor was liable to pay Rs. 1,75,00,000/-. The Corporate Debtor paid Rs. 15,00,000/-, leaving a balance of Rs. 1,60,00,000/- due on 30.11.2017. The Corporate Debtor admitted its liability and issued cheques, which were dishonored. The Operational Creditor sent a Demand Notice dated 12.04.2018 under Section 8 of the Code. The Corporate Debtor did not reply to the Demand Notice or raise any dispute. The Operational Creditor submitted bank statements showing

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has successfully demonstrated the existence of debt and default on …

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

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**Reasoning:** The NCLT considered the evidence presented by the Operational Creditor, including the

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**Interpretation:** The legal issue revolves around the interpretation and application of Section 9

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**Application:** The NCLT applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** M/s Sarla…
- **Respondents:** M/s Blue Blends…
- **Advocates:** Reshant…; Meharunnis…

## Timeline

- **2017-09-25 — Agreement…**: Operational Creditor and Corporate…
- **2017-11-30 — Default…**: Corporate Debtor defaulted on…

## 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)

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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/blue-blends-india-limited-cp-no-1896-ibc-mb-2018-1bfd7b26