# In the matter Quality Rice Exports Pvt. Ltd.

> NCLT judgment dated 2018-02-28. Citation: TCN-2018-NCLT-01763. This case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 28 Feb 2018
- **Citation:** TCN-2018-NCLT-01763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/in-the-matter-quality-rice-exports-pvt-ltd-4c5e02bb

## Summary

### Background

This case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Shri Seo Pal, proprietor of Banarasi Dass & Sons, an operational creditor, against Quality Rice Exports Pvt. Ltd., a corporate debtor, for initiating the corporate insolvency resolution process. The operational creditor claimed that the corporate debtor failed to pay an outstanding amount for the supply of paddy. An earlier petition (CP (IB) No.11/Chd/Pb/2018) was withdrawn due to technical defects related to the demand notice. The petitioner had also filed a suit for recovery in the Hon'ble High Court of Delhi, which was decreed in favor of the petitioner.

## Facts

Shri Seo Pal, proprietor of Banarasi Dass & Sons, is an operational creditor who supplied paddy to Quality Rice Exports Pvt. Ltd., a corporate debtor. Transactions between the parties from 2014-05-10 to 2015-01-15 amounted to ₹2,87,51,689.05. Mr. Vineet Bansal, a director of the corporate debtor, acknowledged the debt. ₹1.25 crores was remitted to the petitioner, leaving a balance of ₹1,62,51,689.05 outstanding. The corporate debtor failed to pay despite a legal notice dated 2016-03-10. The petitioner filed a suit for recovery in the Delhi High Court, which was decreed for ₹1,62,51,689.05 plus interest. The corporate debtor did not appeal. A demand notice under Section 8 of the Code was sent on 2018-02-03 to the corporate debtor and its directors. The petition was

…

## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the …

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

…

**Reasoning:** The court noted that the petitioner, being an operational creditor, had supplied paddy to

…

**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

…

**Application:** The court applied Section 9 to the facts of the case, finding that the

…

## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Seo…
- **Respondents:** Quality Rice…

## Timeline

- **2014-05-10 — Start of Tran…**: Transactions between the operational…
- **2015-01-15 — End of Trans…**: Transactions between the operational…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/in-the-matter-quality-rice-exports-pvt-ltd-4c5e02bb