# In the matter of Crystal Sea Foods Private Limited CP (IB) No. 153-9-AMR-2019

> NCLT judgment dated 2019-10-23. Citation: TCN-2019-NCLT-00838. The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 23 Oct 2019
- **Citation:** TCN-2019-NCLT-00838
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/crystal-sea-foods-private-limited-cp-ib-no-153-9-amr-2019-d4804ecb

## Summary

### Background

The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against the respondent. The petitioner, Kedari Food Exports India Private Limited, claims that the respondent, Crystal Sea Foods Private Limited, defaulted on payments for raw shrimp supplied between March and April 2018. The petitioner issued a demand notice under Section 8 of the Code on May 25, 2019, seeking payment of the outstanding amount along with interest. The respondent failed to respond to the notice, leading to the filing of the petition.

## Facts

Kedari Food Exports India Private Limited (the Petitioner) is a private limited company incorporated on 12.09.2017. Crystal Sea Foods Private Limited (the Respondent) is a private limited company incorporated on 20.06.2013. Between 03.03.2018 and 30.04.2018, the Petitioner supplied varieties of raw shrimp to the Respondent valued at Rs. 1,23,05,600/-. The Respondent paid Rs. 90,13,739/- between 03.04.2018 and 08.02.2019, leaving an outstanding amount of Rs. 32,91,863/-. The Petitioner issued a demand notice on 25.05.2019, seeking payment of the outstanding amount with 18% per annum interest, totaling Rs. 40,88,978/-. The Respondent did not respond to the notice. A fresh notice was issued after the petition was filed, but the Respondent did not appear and was set ex

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## Issues and analysis

### Issue 1: Whether the Respondent defaulted in payment of an operational debt to the Petitioner, warranting …

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

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**Reasoning:** The court reasoned that the Petitioner had supplied shrimp worth Rs. 1,23,05,600/- to the

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**Interpretation:** The interpretation of Section 9 and the definition of 'default' under the IBC

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**Application:** In this case, the Petitioner provided evidence of supplying shrimp, the

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** M/s. Kedari Food…
- **Respondents:** M/s CRYSTAL SEA…
- **Advocates:** Rusheek Red…; L. Aravind…

## Timeline

- **2017-09-12 — Petitioner Inco…**: Kedari Food Exports India…
- **2013-06-20 — Respondent Inco…**: Crystal Sea Foods Private…

## 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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