# In the matter of B.P. Food Products Pvt. Ltd. CP (IB) No. 209-9-NCLT-AHM-2017

> NCLT judgment dated 2018-08-08. Citation: TCN-2018-NCLT-00982. The case involves an application filed by Mansarovar Agro Sacks Private Limited, an operational…

- **Court:** NCLT
- **Order date:** 8 Aug 2018
- **Citation:** TCN-2018-NCLT-00982
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bp-food-products-pvt-ltd-cp-ib-no-209-9-nclt-ahm-2017-a53d2a96

## Summary

### Background

The case involves an application filed by Mansarovar Agro Sacks Private Limited, an operational creditor, seeking to initiate corporate insolvency resolution process (CIRP) against B.P. Food Products Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The applicant claimed that the corporate debtor had defaulted on payments for packing materials supplied between January 6, 2017, and June 23, 2017, totaling Rs. 2,97,19,459/-. The corporate debtor acknowledged its obligation to pay Rs. 2,91,83,732/- in a letter dated July 28, 2017, but the debt remained unpaid. A demand notice was issued on October 9, 2017, but was returned unserved.

## Facts

Mansarovar Agro Sacks Private Limited (the applicant) supplied packing materials to B.P. Food Products Private Limited (the respondent/corporate debtor) between January 6, 2017, and June 23, 2017. The total amount due for these supplies was Rs. 2,97,19,459/-. The respondent acknowledged its obligation to pay Rs. 2,91,83,732/- in a letter dated July 28, 2017, but failed to make the payment. The applicant issued a demand notice on October 9, 2017, which was returned unserved. The applicant then filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP against the respondent. The respondent failed to file replies or objections in a timely manner, citing the unavailability of documents due to shifting premises. The applicant

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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 Adjudicating Authority found that the application filed by the applicant was complete

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover unpaid

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**Application:** The applicant provided sufficient documentation, including invoices, purchase

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## Parties

- **Judges:** Manorama…
- **Appellants:** Mansarovar Agro…
- **Respondents:** B P Food Products…

## Timeline

- **2017-01-06 — Supply of Packing…**: Mansarovar Agro Sacks Private Limited started supplying packing materials to B.P. Food…
- **2017-06-23 — Supply of Packing…**: Mansarovar Agro Sacks Private Limited completed the supply of packing materials to B.P.…

## 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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