# In the matter of Monika Freshway Foods Private Limited CP (IB) No. 191-Chd-Hry-2018

> NCLT judgment dated 2018-11-28. Citation: TCN-2018-NCLT-00280. The petition was filed by M/s Aayush Trading Company, a sole proprietorship, against M/s Monika…

- **Court:** NCLT
- **Order date:** 28 Nov 2018
- **Citation:** TCN-2018-NCLT-00280
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/monika-freshway-foods-private-limited-cp-ib-no-191-chd-hry-2018-f4e0aaaa

## Summary

### Background

The petition was filed by M/s Aayush Trading Company, a sole proprietorship, against M/s Monika Freshway Foods Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating insolvency resolution process. The petitioner, an operational creditor, claimed an outstanding amount of ₹9,85,408/- towards the principal amount, along with interest at 18% per annum from 30.11.2015 to 25.05.2018, for the supply of paddy. The respondent-corporate debtor admitted to trying to settle the account but was unable to do so.

## Facts

M/s Aayush Trading Company, a sole proprietorship, filed a petition against M/s Monika Freshway Foods Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. Aayush Trading Company, acting as a Commission Agent, supplied paddy to Monika Freshway Foods, a company running Rice Mills and Export, on a regular basis between 04.10.2013 and 04.11.2015. Invoices were issued by Aayush Trading Company in the name of Monika Freshway Foods. The last payment made by Monika Freshway Foods was on 04.11.2015, amounting to ₹1,59,121/- by cheque. Aayush Trading Company claimed an outstanding amount of ₹9,85,408/- towards the principal, along with interest at 18% per annum from 30.11.2015 to 25.05.2018. A demand notice dated 24.05.2018 was sent to Monika Freshway

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## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6(1) of the

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**Reasoning:** The court perused Form-5 and found it complete in all respects, indicating that the

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**Interpretation:** The completeness of the application is a prerequisite for its admissibility

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**Application:** The court's finding that Form-5 was complete in all respects meant that the

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## Parties

- **Judges:** R.P.Nag…; Mr.Pradeep…
- **Appellants:** M/s Aayush…
- **Respondents:** M/s Monika…

## Timeline

- **2008-11-03 — Incorporation of…**: M/s Monika Freshway Foods Private Limited was…
- **2013-10-04 — Transaction Per…**: Start of the period during which the…

## 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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