# In the matter of Emmtech Farms Pvt. Ltd. CP(IB)No. 68-KB-2018

> NCLT judgment dated 2019-07-30. Citation: TCN-2019-NCLT-02220. The case involves an application filed by M/s Jeco Agrovet Pvt. Ltd., the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 30 Jul 2019
- **Citation:** TCN-2019-NCLT-02220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/emmtech-farms-pvt-ltd-cpibno-68-kb-2018-ff769d38

## Summary

### Background

The case involves an application filed by M/s Jeco Agrovet Pvt. Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Emmtech Farms Pvt. Ltd., the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted in paying an operational debt of Rs. 40,71,210/- for poultry feeds supplied between 01.04.2014 and 31.10.2014. A demand notice was served under Section 8 of the IBC on 11.04.2017, but the Corporate Debtor did not respond.

## Facts

M/s Jeco Agrovet Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Emmtech Farms Pvt. Ltd. (Corporate Debtor). The Operational Creditor supplied poultry feeds to the Corporate Debtor between 01.04.2014 and 31.10.2014. The Corporate Debtor failed to pay Rs. 40,71,210/- for the supplied goods, leading to a default. The Operational Creditor issued a demand notice under Section 8 of the IBC on 11.04.2017, but the Corporate Debtor did not respond. The Corporate Debtor raised defenses of limitation and defective goods. The last consignment of goods was received by the Corporate Debtor on 31.12.2014. The application was filed on 22.11.2017.

## Issues and analysis

### Issue 1: Whether the application filed by the Operational …

**Ratio:** The right to sue accrues on the date when default occurs, and if the default occurred

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**Reasoning:** The court considered the date of the last consignment of goods (31.12.2014) and the date

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**Interpretation:** The limitation period for filing an application under Section 9 of the IBC is

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**Application:** In this case, the default occurred in December 2014, and the application was

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## Parties

- **Judges:** Madan B.…
- **Appellants:** Jeco Agrovet…
- **Respondents:** Emmtech Farms…
- **Advocates:** Sankarsan…; Shwetaank…; +1 more

## Timeline

- **2014-04-01 — Supply of…**: Operational Creditor supplied goods (poultry feeds) to the Corporate Debtor between…
- **2014-12-31 — Last Consignment…**: The last consignment of goods was received…

## 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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