# In the matter of Farmville Agrovet Ltd. Dy No.3(067)-2018

> NCLT judgment dated 2018-08-01. Citation: TCN-2018-NCLT-01027. The case involves an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, for…

- **Court:** NCLT
- **Order date:** 1 Aug 2018
- **Citation:** TCN-2018-NCLT-01027
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/farmville-agrovet-ltd-dy-no3067-2018-86464439

## Summary

### Background

The case involves an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against M/s. Farmville Agrovet Ltd. by M/s. Multichemical Industries Pvt. Ltd., the Operational Creditor (OC). The OC claims that the Corporate Debtor (CD) defaulted on payments for cattle feed supplements supplied on credit. The OC initially considered filing a winding-up petition in the High Court but approached the NCLT after realizing its jurisdiction.

## Facts

M/s. Multichemical Industries Pvt. Ltd. (Operational Creditor - OC) is engaged in manufacturing, dealing, and distributing various products, including cattle feed supplements. M/s. Farmville Agrovet Ltd. (Corporate Debtor - CD) is also involved in a similar business with manufacturing units across the country. The CD approached the OC for the supply of cattle feed supplements, including Guar Korama, for its units in Howrah, West Bengal, Hajipur, Bihar, and Gonda, Uttar Pradesh, on a credit basis with a promise of payment within 45 days. The OC supplied the goods and submitted invoices. The agreement stipulated an 18% per annum interest on delayed payments. The CD made partial payments, but an amount of Rs. 13,55,050/- remained outstanding as of 03.07.2015. The OC

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency & Bankruptcy Code, 2016, is complete …

**Ratio:** Section 9 of the Insolvency & Bankruptcy Code, 2016, read with Rule 6 of the

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**Reasoning:** The court considered the application and connected documents and found that the

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**Interpretation:** The completeness of the application under Section 9 is crucial for its

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**Application:** In this case, the application was found to be complete, the debt was unpaid,

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## Parties

- **Judges:** P. K. S…
- **Appellants:** M/s Multichemical…
- **Respondents:** M/s. Farmville…

## Timeline

- **2015-07-03 — Outstanding…**: An amount of Rs. 13,55,050/- remains due from the Corporate Debtor to the Operational…
- **2016-07-14 — Demand N…**: The Operational Creditor served a notice…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/farmville-agrovet-ltd-dy-no3067-2018-86464439