# In the matter of Mahaan Proteins Ltd. CP No. (IB)-103-(PB)-2017

> NCLT judgment dated 2017-06-27. Citation: TCN-2017-NCLT-00783. M/S Vertex Chemicals, an operational creditor, filed an application under Section 9 of the IBC,…

- **Court:** NCLT
- **Order date:** 27 Jun 2017
- **Citation:** TCN-2017-NCLT-00783
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mahaan-proteins-ltd-cp-no-ib-103-pb-2017-2b446a77

## Summary

### Background

M/S Vertex Chemicals, an operational creditor, filed an application under Section 9 of the IBC, 2016, against Maha-n Proteins Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on a payment of Rs. 14,68,800/- for edible grade lactose supplied. The corporate debtor initially placed a purchase order and issued a cheque, but later took it back, citing the need to issue another cheque. However, the replacement cheque was not deposited due to the corporate debtor's failure to deposit funds into their account. The operational creditor sent multiple requests for payment, but the corporate debtor failed to liquidate the liability.

## Facts

M/S Vertex Chemicals, an operational creditor, supplied edible grade lactose to Maha-n Proteins Limited, the corporate debtor. The corporate debtor placed a purchase order on 10.02.2016 for 20000 kg of lactose, amounting to Rs. 14,68,800/-. The operational creditor delivered the goods to the corporate debtor's address in Uttar Pradesh. Initially, the corporate debtor issued a cheque dated 10.03.2016 for the amount, but subsequently took it back, promising to issue another cheque. The replacement cheque, dated 15.06.2016, was not deposited by the corporate debtor due to insufficient funds in their account. The operational creditor sent numerous requests for payment. The operational creditor issued a demand notice on 13.04.2017. In response, the corporate debtor claimed

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## Issues and analysis

### Issue 1: Whether the operational creditor, M/S Vertex Chemicals, has established a valid claim against the …

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

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**Reasoning:** The court noted that the operational creditor had provided sufficient evidence, including

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

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**Application:** In this case, the operational creditor, M/S Vertex Chemicals, provided evidence

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## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** M/s. Vertex…
- **Respondents:** Maha-n Proteins…

## Timeline

- **2016-02-10 — Purchase…**: Corporate Debtor placed a purchase order…
- **2016-03-10 — Cheque I…**: Corporate Debtor issued a…

## 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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