# In the matter of Global Sourcing and Procurement Consolidation Limited CP (IB) 2120-MB-IV-2019

> NCLT judgment dated 2019-10-22. Citation: TCN-2019-NCLT-00877. The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Oct 2019
- **Citation:** TCN-2019-NCLT-00877
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/global-sourcing-and-procurement-consolidation-limited-cp-ib-2120-mb-iv-2019-21373194

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Bostock New Zealand Limited (Operational Creditor) against Global Sourcing and Procurement Consolidation Limited (Corporate Debtor). The Operational Creditor supplied fresh New Zealand apples to the Corporate Debtor for distribution in the Indian market, based on two sales contracts dated 12.03.2018 and 28.03.2018. The Corporate Debtor failed to make payment of US $1,09,592.00, which was due as of 16.03.2018.

## Facts

Bostock New Zealand Limited (Operational Creditor) filed a Company Petition under Section 9 of the IBC against Global Sourcing and Procurement Consolidation Limited (Corporate Debtor) due to non-payment of US $1,09,592.00. The Corporate Debtor had approached the Operational Creditor for the supply of fresh New Zealand apples for distribution in the Indian market. Two sales contracts were signed on 12.03.2018 and 28.03.2018. The Operational Creditor supplied the goods as per the contracts, and the consignments were delivered to the Corporate Debtor. A demand notice was served on 19.03.2019, but the Corporate Debtor did not reply. The Corporate Debtor had assured payment on 08.10.2018, but no payment was made. A Letter of Comfort Bond for Repayment dated 16.08.2018 was

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

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

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had failed to make payment of

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the Operational Creditor provided sufficient evidence to

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Bostock New…
- **Respondents:** Global Sourcing…
- **Advocates:** Namrata B…

## Timeline

- **2018-03-12 — Sales Cont…**: First sales contract signed between the…
- **2018-03-28 — Sales Cont…**: Second sales contract signed between the…

## 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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