# In the matter of Farmech Foods Ltd. Company Petition (IB)No.32-ALD-2019

> NCLT judgment dated 2020-02-04. Citation: TCN-2020-NCLT-02080. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 4 Feb 2020
- **Citation:** TCN-2020-NCLT-02080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/farmech-foods-ltd-company-petition-ibno32-ald-2019-b422012a

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Baff Engineers (P) Ltd., an operational creditor, against M/s Farmech Foods Pvt. Ltd., the corporate debtor, for initiation of Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed default in payment for supply, installation, and commissioning of a dairy processing plant.

## Facts

Baff Engineers (P) Ltd., the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Farmech Foods Pvt. Ltd., the corporate debtor, for initiating CIRP due to unpaid operational debt. Baff Engineers claimed to have supplied, installed, and commissioned a dairy processing plant for Farmech Foods based on purchase orders issued in 2013. Invoices were raised for Rs. 6,56,43,312 between 2013 and 2016, out of which Rs. 5,31,53,832 was paid, leaving an outstanding debt of Rs. 1,24,89,480. A demand notice was sent to the corporate debtor on 18.12.2018 under Section 8 of the IBC, but the corporate debtor failed to repay the debt. The corporate debtor replied to the demand notice admitting that Rs. 1,19,64,674 was

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** Section 9(5) of the IBC outlines the requirements for admitting an application for

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**Reasoning:** The Adjudicating Authority observed that the petitioner had complied with Section 9(3)(b)

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**Interpretation:** Section 9 requires the application to be complete in all respects, including

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**Application:** The petitioner's compliance with the statutory requirements led the

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** BAFF ENGINEERS…
- **Respondents:** M/s FARMECH FOODS…

## Timeline

- **2018-12-18 — Demand N…**: Operational creditor sent a demand notice to the corporate debtor under Section 8 of the…
- **2018-12-20 — Board Reso…**: Board Resolution of Baaf Engineers (P) Ltd. authorizing Mr. Anil Bhan to submit an…

## 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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