# In the matter of Karuturi Foods Private Limited CP (IB) No. 28-BB-17

> NCLT judgment dated 2017-10-10. Citation: TCN-2017-NCLT-00297. M/s Sunrise Enterprises, an operational creditor, filed a company petition against M/s Karuturi…

- **Court:** NCLT
- **Order date:** 10 Oct 2017
- **Citation:** TCN-2017-NCLT-00297
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/karuturi-foods-private-limited-cp-ib-no-28-bb-17-0e24e1fa

## Summary

### Background

M/s Sunrise Enterprises, an operational creditor, filed a company petition against M/s Karuturi Foods Private Limited, the corporate debtor, for defaulting on a payment of Rs. 8,48,749/- along with interest. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking admission of the petition, declaration of moratorium, direction for public announcement of initiation of corporate insolvency process, and appointment of an Interim Resolution Professional.

## Facts

M/s Sunrise Enterprises, an operational creditor, provided services to M/s Karuturi Foods Private Limited, the corporate debtor, under an agreement. The value of services provided was Rs. 18,58,640/-. The corporate debtor paid Rs. 10,46,565/- to the operational creditor, leaving an outstanding balance of Rs. 8,48,749/-. The operational creditor issued a statutory notice under Section 8 of the Insolvency and Bankruptcy Code on March 7, 2017, demanding repayment of the outstanding amount. The notice was returned undelivered. The operational creditor then filed a petition under Section 9 of the Code to initiate the corporate insolvency resolution process.

## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the Insolvency and …

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

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**Reasoning:** The corporate debtor defaulted in repaying the outstanding amount of Rs. 8,48,749/-

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

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**Application:** The Tribunal applied Section 9 to the facts of the case, noting that the

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## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Appellants:** Shri.H.S.Sh…
- **Respondents:** M/s Karuturi…

## Timeline

- **2017-03-07 — Statutory…**: Operational creditor issued a statutory notice under Section 8 of the Code to the…
- **2017-06-22 — Hearing…**: Hearing on the…

## 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)

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