# In the matter of Global Sourcing and Procurement Consolidation Limited C.P. (IB) No. 2053-NCLT-MB-2018

> NCLT judgment dated 2019-11-13. Citation: TCN-2019-NCLT-00625. Perfect Bite, an operational creditor, filed an application under Section 9 of the Insolvency &…

- **Court:** NCLT
- **Order date:** 13 Nov 2019
- **Citation:** TCN-2019-NCLT-00625
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/global-sourcing-and-procurement-consolidation-limited-cp-ib-no-2053-nclt-mb-2018-ecf8cd7a

## Summary

### Background

Perfect Bite, an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Global Sourcing and Procurement Consolidation Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The application was based on the corporate debtor's failure to pay for fresh apples supplied between February 2017 and April 2017, for which 11 commercial invoices were raised. Despite a payment agreement dated 26.12.2017 and the issuance of post-dated cheques (PDCs), the corporate debtor failed to make the payments, and the PDCs were returned unpaid. A demand notice was issued on 19.04.2018, but the corporate debtor did not respond.

## Facts

Perfect Bite supplied fresh apples to Global Sourcing and Procurement Consolidation Limited between February 2017 and April 2017, raising 11 commercial invoices. The corporate debtor failed to pay the due amount under the invoices. An agreement for payment was entered on 26.12.2017, where the corporate debtor admitted and promised to pay the outstanding amount and issued two Post Dated Cheques (PDCs). The PDCs were returned unpaid. A demand notice dated 19.04.2018 was issued to the corporate debtor under Section 8 of the I&B Code demanding payment of USD 2,32,425/-, but the corporate debtor did not reply. The corporate debtor admitted its liability towards the outstanding amount vide its letter dated 10.12.2018. The operational debt is more than Rupees One Lakh.

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## Issues and analysis

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

**Ratio:** Section 9 of the I&B Code, 2016, outlines the requirements for an operational

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**Reasoning:** The NCLT determined that the application was complete as per the requirements of Section

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**Interpretation:** Section 9(2) of the I&B Code requires the application to be complete in all

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**Application:** The NCLT verified that the application contained all the required documents and

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## Parties

- **Judges:** Bhaskara Pantula…; RAJESH S…
- **Appellants:** Perfect…
- **Respondents:** Global Sourcing…
- **Advocates:** Yagnesh M.…

## Timeline

- **2017-02-01 — Supply of…**: Applicant supplied fresh apples to the Corporate Debtor between February 2017 to April…
- **2017-04-01 — Supply of…**: Applicant supplied fresh apples to the Corporate Debtor between February 2017 to April…

## 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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