# In the matter of Esha Foods Private Limited (IB)-1412(ND)2019

> NCLT judgment dated 2019-09-19. Citation: TCN-2019-NCLT-01367. M/s Ambe Agrofoods Private Limited, the operational creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 19 Sept 2019
- **Citation:** TCN-2019-NCLT-01367
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/esha-foods-private-limited-ib-1412nd2019-862bd06c

## Summary

### Background

M/s Ambe Agrofoods Private Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Eshal Foods Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for supplied Chakki Wheat Flour.

## Facts

M/s Ambe Agrofoods Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Eshal Foods Private Limited (Corporate Debtor). The Operational Creditor claimed that they supplied Chakki Wheat Flour to the Corporate Debtor from 14.11.2018 to 06.02.2019. The total amount claimed under the invoices was Rs. 20,04,734.50, including interest at 12% per annum. The last payment received by the Operational Creditor was Rs. 2,15,000 on 05.02.2019. A demand notice dated 26.03.2019 was sent under Section 8 of IBC, 2016, on 27.03.2019 via registered post and email. The registered post was returned with remarks indicating non-service. The Operational

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the IBC, 2016 is complete …

**Ratio:** Section 9(5) of the IBC, 2016 states that the Adjudicating Authority shall admit the

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**Reasoning:** The Tribunal found that the petition was complete and that the corporate debtor had

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

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**Application:** The Tribunal applied Section 9(5) of the IBC to the facts of the case and found

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## Parties

- **Judges:** Ina Mal…; SHRI. L. N.…
- **Appellants:** M/s Ambe Agrofoods…
- **Respondents:** M/s Eshal Foods…

## Timeline

- **2018-11-14 — Supply of Chakki Wheat…**: The Operational Creditor started supplying…
- **2019-02-06 — Supply of Chakki Wheat…**: The Operational Creditor ceased supplying…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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