# In the matter of Delecto Foods Pvt. Ltd. CP(IB) No. 450-9-HDB/2019

> NCLT judgment dated 2020-02-05. Citation: TCN-2020-NCLT-02066. The case involves a Company Application filed by Jupiter Food Products Private Limited…

- **Court:** NCLT
- **Order date:** 5 Feb 2020
- **Citation:** TCN-2020-NCLT-02066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/delecto-foods-pvt-ltd-cpib-no-450-9-hdb2019-60f6242d

## Summary

### Background

The case involves a Company Application filed by Jupiter Food Products Private Limited (Operational Creditor) against Delecto Foods Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for goods supplied. The Corporate Debtor disputed the amount, citing quality issues and shortages in supplies. The Operational Creditor issued a statutory demand notice, which the Corporate Debtor responded to, admitting liability to a lesser extent but disputing the full amount claimed.

## Facts

Jupiter Food Products Private Limited (Operational Creditor) filed an application against Delecto Foods Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for non-payment of operational debt. The Operational Creditor supplied liquid chicory and roasted chicory cubes to the Corporate Debtor. The Corporate Debtor initially paid freight charges but later stopped, showing debit notes raised by the Operational Creditor as payments of invoices. The Operational Creditor issued a statutory demand notice for Rs.58,83,226/-, which the Corporate Debtor responded to, admitting a liability of Rs.40,46,021.94 but disputing the full amount due to quality issues, shortages, and damaged drums. The Corporate Debtor claimed that the

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## Issues and analysis

### Issue 1: Whether there is an 'operational …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016, specifies that the minimum amount

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**Reasoning:** The Adjudicating Authority examined the invoices and other documents submitted by the

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**Interpretation:** The term 'operational debt' is interpreted to mean a debt related to the

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**Application:** In this case, the Adjudicating Authority determined that the debt claimed by

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Jupiter Foods…
- **Respondents:** Delecto Foods…; Delecto Foods Pvt…
- **Advocates:** N.Hari…; K.Pras…; +2 more

## Timeline

- **2016-04-01 — Commencement of…**: Corporate Debtor started procuring liquid chicory and roasted chicory cubes from the…
- **2019-01-29 — Statutory Dema…**: Operational Creditor issued a Statutory Demand Notice dated 29.01.2019 under section 8 of…

## 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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