# In the matter of B.T. & F. C. Private Limited C.P.(IB)No. 165-BB-2018

> NCLT judgment dated 2019-09-27. Citation: TCN-2019-NCLT-01206. The case involves an application filed by M/s. Radico Khaitan Limited, an operational creditor,…

- **Court:** NCLT
- **Order date:** 27 Sept 2019
- **Citation:** TCN-2019-NCLT-01206
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bt-f-c-private-limited-cpibno-165-bb-2018-97818192

## Summary

### Background

The case involves an application filed by M/s. Radico Khaitan Limited, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. B.T. & F.C. Private Limited, the corporate debtor, due to a default of Rs. 5,72,49,000/-. The operational debt arose from an agreement where the corporate debtor was to manufacture IMFL products for the operational creditor. Disputes arose, leading to arbitration where an award was granted in favor of the operational creditor. The corporate debtor failed to pay the awarded amount, leading to the current CIRP application.

## Facts

M/s. Radico Khaitan Limited (Operational Creditor) filed a petition under Section 9 of the IBC against M/s. B.T. & F.C. Private Limited (Corporate Debtor) for a default of Rs. 5,72,49,000/-. The debt arose from an agreement where the Corporate Debtor was to manufacture India Made Foreign Liquor (IMFL) products for the Operational Creditor. Disputes arose, leading to arbitration. The Operational Creditor appointed Shri K. Ramamurthy as its nominee arbitrator on 2010-05-22, but the Corporate Debtor failed to appoint its nominee. The Operational Creditor approached the Delhi High Court, which appointed Shri Justice A.P. Shah as a sole arbitrator on 2012-03-12. Shri A.P. Shah resigned, and Shri S.K. Mahajan was appointed as the sole arbitrator on 2014-05-29. Shri S.K.

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## Issues and analysis

### Issue 1: Whether the application for initiation of CIRP by the Operational Creditor is maintainable under …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The NCLT considered the arguments presented by both parties and examined the relevant

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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 Operational Creditor demonstrated that a debt existed based

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s.Radico…
- **Respondents:** M/s.B.T. & F.C.…
- **Advocates:** Udayarkar…; Avinesh Balakrishn…

## Timeline

- **2007-07-01 — Agreement E…**: Agreement entered into between Operational Creditor and Corporate Debtor for…
- **2010-05-22 — Arbitrator Ap…**: Operational Creditor appointed Justice Shri…

## 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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