# In the matter of Enriched Restaurant Pvt. Ltd. (IB)-474 (ND)-2019

> NCLT judgment dated 2019-04-23. Citation: TCN-2019-NCLT-03763. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 23 Apr 2019
- **Citation:** TCN-2019-NCLT-03763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/enriched-restaurant-pvt-ltd-ib-474-nd-2019-a6f8572f

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Parmod Sharma (Operational Creditor) against Emsons Organics Ltd (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor provided services to the corporate debtor for attending Excise & DGFT Matters. A fee of ₹1 lac per financial year was agreed upon, with a 12% per annum interest on delayed payments. Two bills were raised for FY 2014-15 and FY 2015-16, totaling ₹2 lacs. The total debt claimed is ₹2,12,800/-, including principal and interest. A demand notice was issued and served, but the corporate debtor failed to make the payment.

## Facts

Parmod Sharma, an operational creditor, provided services to Emsons Organics Ltd, the corporate debtor, for attending Excise & DGFT Matters. An agreement was made for a fee of ₹1 lac per financial year, with a 12% per annum interest on delayed payments. Two invoices were raised for FY 2014-15 and FY 2015-16, totaling ₹2 lacs. The total debt claimed is ₹2,12,800/-, including principal and interest. A demand notice was issued on 12.04.2017 and served on the corporate debtor on 23.04.2017. The corporate debtor acknowledged the principal amount of ₹1,90,000/- but disputed the interest component. The operational creditor filed an affidavit stating that the corporate debtor acknowledged the debt in its reply dated 03.05.2017 and that there is no dispute of unpaid

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## Issues and analysis

### Issue 1: Whether the operational debt was …

**Ratio:** The existence of a genuine dispute regarding the operational debt is a bar to the

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**Reasoning:** The court noted that the corporate debtor acknowledged the principal amount of the debt

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**Interpretation:** The court interpreted the term 'dispute' to mean a genuine and bona fide

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**Application:** The court applied the ratio to the facts by finding that the corporate debtor's

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Parmod S…
- **Respondents:** Emsons Organics…

## Timeline

- **2014-04-01 — Invoice R…**: Invoice for ₹1 lac…
- **2015-04-05 — Invoice R…**: Invoice for ₹1 lac…

## 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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