# In the matter of Maxgrow India Limited C.P. (IB) No. 978-MB-2020

> NCLT judgment dated 2021-06-04. Citation: TCN-2021-NCLT-02032. The matter pertains to a petition filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 4 Jun 2021
- **Citation:** TCN-2021-NCLT-02032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/maxgrow-india-limited-cp-ib-no-978-mb-2020-0c1fb79a

## Summary

### Background

The matter pertains to a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Respondent. The Petitioner, an Operational Creditor, alleges default in payment of an Operational Debt amounting to ₹. 1,54,75,679/- along with interest @ 18%, totaling ₹.71,90,176/-. The Petitioner clarified that the interest component is not part of the original invoice and would not object if it is excluded from the debt calculation.

## Facts

K Balaji Textile filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Maxgrow India Limited, alleging a default in payment of an operational debt. The debt amounted to ₹. 1,54,75,679/- with an additional interest claim of ₹.71,90,176/-. The petitioner clarified that the interest was not part of the original invoice. Maxgrow India Limited admitted to the debt and default. The petition was found to be within the time limit and complete. The petitioner suggested the name of Mayank Rameshchandra Jain as the Interim Resolution Professional (IRP).

## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, should be …

**Ratio:** A petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, can be admitted

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**Reasoning:** The court reasoned that since the Respondent admitted the debt and default, and the

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**Interpretation:** Section 9 of the Insolvency & Bankruptcy Code, 2016, allows an operational

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**Application:** In this case, the Respondent admitted the debt and default. The court found the

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## Parties

- **Judges:** V. Nallasen…; Janab Mohammed…
- **Appellants:** K Balaji T…
- **Respondents:** Maxgrow India…

## Timeline

- **2021-06-04 — Order Da…**: The order was issued admitting the Company Petition and initiating the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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