# 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-00868. 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-00868
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/global-sourcing-and-procurement-consolidation-limited-cp-ib-2120-mb-iv-2019-a1cdc345

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Bostock New Zealand Limited, the Operational Creditor, against Global Sourcing and Procurement Consolidation Limited, the 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 March 12, 2018, and March 28, 2018. The Corporate Debtor failed to make payment of US $1,09,592.00, which was due as of March 16, 2018.

## Facts

Bostock New Zealand Limited (Operational Creditor) supplied fresh New Zealand apples to Global Sourcing and Procurement Consolidation Limited (Corporate Debtor) for distribution in the Indian market. The terms were agreed upon and signed under two Sales Contracts dated 12.03.2018 and 28.03.2018. The Corporate Debtor failed to make payment of US $1,09,592.00 as principal, with the date of default being 16.03.2018. The Operational Creditor served a Demand Notice in Form 3 dated 19.03.2019 to the Corporate Debtor, but the Corporate Debtor did not reply. The Corporate Debtor had issued a Letter of Comfort Bond for Repayment dated 16.08.2018, giving a repayment schedule for clearing the outstanding amounts, but these were not honored. The consignments of apples were

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## Issues and analysis

### Issue 1: Whether the application made by the Operational Creditor is complete in all respects as required by …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4(1) of the

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**Reasoning:** The Adjudicating Authority examined the application and the documents submitted by the

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**Interpretation:** The legal issue concerns whether the Operational Creditor has met all the

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**Application:** The Adjudicating Authority applied the legal principle by verifying that the

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** Bostock New…
- **Respondents:** Global Sourcing…

## Timeline

- **2018-03-12 — Sales Contra…**: One of the two sales contracts between Bostock New Zealand Limited and Global Sourcing…
- **2018-03-28 — Sales Contra…**: One of the two sales contracts between Bostock New Zealand Limited and Global Sourcing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 2(20) — Application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-2)

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