# In the matter of FE(INdia) Ltd. IB-487(ND)-2018

> NCLT judgment dated 2018-05-18. Citation: TCN-2018-NCLT-01379. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking…

- **Court:** NCLT
- **Order date:** 18 May 2018
- **Citation:** TCN-2018-NCLT-01379
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/feindia-ltd-ib-487nd-2018-2ad4b884

## Summary

### Background

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Respondent Corporate Debtor, FE(India) Ltd., due to its inability to liquidate outstanding dues. The Petitioner, Shakti Clearing Agency, claimed to have a long-standing business relationship with the Corporate Debtor, providing clearing agent services for the Corporate Debtor's agro-product manufacturing and supply business. The Corporate Debtor's goods were shipped and stored by the Operational Creditor at Kandla Port, Gujarat. The Operational Creditor maintained a running account for services including transportation, storage, goods handling, and service charges. Despite a payment of Rs. 5 lakhs on

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## Facts

Shakti Clearing Agency (Operational Creditor) filed a petition against FE(India) Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. Shakti Clearing Agency provided clearing agent services to FE(India) Ltd., a manufacturer and supplier of agro products. The Corporate Debtor's goods were stored in the Operational Creditor's warehouses at Kandla Port, Gujarat. The Operational Creditor maintained a running account for services rendered, including transportation, storage, goods handling, and service charges. FE(India) Ltd. made a payment of Rs. 5 lakhs on July 8, 2015, leaving an outstanding balance of Rs. 13,36,535. Despite demands, FE(India) Ltd. failed to liquidate the outstanding liability, citing financial crisis. FE(India) Ltd.

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court noted that the present petition was filed in the required format and complied

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 by verifying that the petition met the statutory

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Shakti Clearing…
- **Respondents:** FE(India)…

## Timeline

- **2015-07-08 — Partial Payment by…**: FE(India) Ltd. made a payment of Rs. 5 lakhs towards reduction of its dues to Shakti…
- **2015-06-01 — Corporate Debtor…**: FE(India) Ltd. acknowledged the outstanding…

## 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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