# In the matter of GM Sugar and Energy Ltd. C.P. (IB) 32-BB-2018

> NCLT judgment dated 2018-06-15. Citation: TCN-2018-NCLT-01258. Shri Gurudatt Sugars Marketing Pvt. Ltd. (Operational Creditor) filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 15 Jun 2018
- **Citation:** TCN-2018-NCLT-01258
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gm-sugar-and-energy-ltd-cp-ib-32-bb-2018-5f2f8e68

## Summary

### Background

Shri Gurudatt Sugars Marketing Pvt. Ltd. (Operational Creditor) filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the I & B (Application to Adjudicating Authority) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against GM Sugar and Energy Ltd. (Corporate Debtor). The Operational Creditor and Corporate Debtor entered into a commercial relationship vide sales confirmation dated 22.12.2016, where the Corporate Debtor was to supply sugar to the Operational Creditor against advance payment. The Corporate Debtor failed to supply the sugar despite receiving full payment.

## Facts

Shri Gurudatt Sugars Marketing Pvt. Ltd. (Operational Creditor) and GM Sugar and Energy Ltd. (Corporate Debtor) entered into a commercial relationship on 22.12.2016 for the supply of sugar. The Corporate Debtor was to supply 26,500 quintals of S-30 Sugar at Rs. 3,725 per quintal to the Operational Creditor by the second week of January 2017, against 100% advance payment. The Operational Creditor paid Rs. 9,87,12,500 as advance. Kejriwal Sugar Agencies Pvt. Ltd. made a payment of Rs. 1,00,00,000 on behalf of the Operational Creditor, and the remaining Rs. 8,87,12,500 was paid directly by the Operational Creditor. The Corporate Debtor failed to supply the sugar. The Operational Creditor sent reminders, but the Corporate Debtor did not refund the advance. The Corporate

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by the Operational Creditor is maintainable under Section 9 of …

**Ratio:** Section 9 of the IBC, 2016 allows an operational creditor to initiate CIRP against a

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**Reasoning:** The court found that the Operational Creditor had filed all necessary documents,

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**Interpretation:** Section 9 of the IBC, 2016 provides a mechanism for operational creditors to

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**Application:** The court applied Section 9 of the IBC, 2016 to the facts of the case and found

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Gurudatt Sugars…
- **Respondents:** G.M. Sugar &…

## Timeline

- **2007-11-27 — Incorporation of…**: GM Sugar and Energy Ltd. was incorporated…
- **2016-12-22 — Sales Confi…**: Operational Creditor and Corporate Debtor entered into a commercial relationship vide…

## 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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