# In the matter of Madras Fertilizers Limited {MA-430-IB-2018 in CP-335-(IB)-2017]

> NCLT judgment dated 2018-09-17. Citation: TCN-2018-NCLT-00748. The case involves M/s. Madras Fertilizers Limited as the Corporate Debtor and M/s. Tarapore…

- **Court:** NCLT
- **Order date:** 17 Sept 2018
- **Citation:** TCN-2018-NCLT-00748
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/madras-fertilizers-limited-ma-430-ib-2018-in-cp-335-ib-2017-58b9478f

## Summary

### Background

The case involves M/s. Madras Fertilizers Limited as the Corporate Debtor and M/s. Tarapore Constructions Pvt. Ltd. as the Operational Creditor. The Operational Creditor filed a claim for an outstanding amount of Rs.3,42,03,114/-. Madras Fertilizers Limited stated that they had settled the outstanding amount due to the petitioner and were directed to furnish an affidavit stating that there were no overdue payments with respect to any other creditors. Madras Fertilizers Limited filed an affidavit to that effect.

## Facts

M/s. Madras Fertilizers Limited is the Corporate Debtor. M/s. Tarapore Constructions Pvt. Ltd. is the Operational Creditor claiming an outstanding amount of Rs.3,42,03,114/-. The Respondent's counsel stated that the outstanding amount is being paid by cheque. Madras Fertilizers Limited stated that the public announcement is not needed as the company has already settled the outstanding amount. Madras Fertilizers Limited was directed to furnish an affidavit stating that there are no overdue payments to other creditors, which they did. The Resolution Professional (RP) had communicated his acceptance via email dated 2018-09-12. The Tribunal directed Madras Fertilizers Limited to pay Rs.35,000/- to the IRP Mr. Swarnamani Ramasamy.

## Issues and analysis

### Issue 1: Whether the publication of notice is necessary …

**Ratio:** The publication of notice is generally required to inform creditors and other

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**Reasoning:** The Tribunal considered the statement by the Corporate Debtor that the outstanding amount

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**Interpretation:** This indicates that the requirement for public notice can be waived if the

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**Application:** In this case, because Madras Fertilizers Limited claimed to have settled the

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## Parties

- **Judges:** S. VIJAYARA…; K. Anantha…
- **Respondents:** M/s. Madras…; M/s. Tarapore…

## Timeline

- **2017-01-01 — CP/335/(IB…**: Filing of CP/335/(IB)/20…
- **2018-09-12 — RP Accep…**: Resolution Professional communicated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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