# In the matter of GM Agro Allied Pvt. Ltd. CP(IB) No. 37-KB-2019

> NCLT judgment dated 2019-11-08. Citation: TCN-2019-NCLT-00641. Shri Sanjay Agarwal, an Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 8 Nov 2019
- **Citation:** TCN-2019-NCLT-00641
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gm-agro-allied-pvt-ltd-cpib-no-37-kb-2019-8c0b70c1

## Summary

### Background

Shri Sanjay Agarwal, an Operational Creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, alleging that M/s. GM Agro Allied Pvt. Ltd., the Corporate Debtor, defaulted in payment of Rs. 7,83,228/- for the supply of de-oiled rice bran. The Operational Creditor claimed that the Corporate Debtor failed to make payments despite supplying materials between 06-12-2015 and 06-02-2016. The Corporate Debtor made partial payments via cheques which were dishonored due to insufficient funds. The Operational Creditor issued a demand notice under Section 8(1) of the Code on 30-11-2018, which was received by the Corporate Debtor on 15-11-2018, but no reply was received.

## Facts

Shri Sanjay Agarwal, representing Sri Laxmi Agro Products (Operational Creditor), filed an application against M/s. GM Agro Allied Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016. The claim was for Rs. 7,83,228/- due to unpaid operational debt for the supply of de-oiled rice bran. The Operational Creditor supplied materials between 06-12-2015 and 06-02-2016. The Corporate Debtor made partial payments via cheques which were dishonored due to insufficient funds. The Operational Creditor issued a demand notice on 30-11-2018, received by the Corporate Debtor on 15-11-2018, but no reply was received. The Corporate Debtor did not object to the application. The Operational Creditor also claimed interest @ 12% per annum, but the court

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## Issues and analysis

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

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

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**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence, including

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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 to the facts of the case, finding that the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Sanjay Ag…
- **Respondents:** M/s. GM Agro…

## Timeline

- **2015-12-06 — Supply of Materials…**: The Operational Creditor started supplying…
- **2016-02-06 — Supply of Mater…**: The Operational Creditor completed the supply of de-oiled rice bran to the Corporate…

## 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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