# In the matter of Nath Solvent Extractions Pvt. Ltd. CP (IB) No. 15-Chd-Hry-2019

> NCLT judgment dated 2020-05-18. Citation: TCN-2020-NCLT-01352. The application was filed by Jai Bhagwan Raghbir Chand under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 18 May 2020
- **Citation:** TCN-2020-NCLT-01352
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nath-solvent-extractions-pvt-ltd-cp-ib-no-15-chd-hry-2019-1229b904

## Summary

### Background

The application was filed by Jai Bhagwan Raghbir Chand under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against Nath Solvent Extractions Pvt. Ltd. The applicant, Jai Bhagwan, claimed to be an operational creditor, alleging that Nath Solvent failed to pay for sunflower seeds and mustard seeds supplied. The applicant claimed an outstanding amount of ₹32,76,147.07, including the principal amount and interest at 18% per annum.

## Facts

Jai Bhagwan Raghbir Chand, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Nath Solvent Extractions Pvt. Ltd. Jai Bhagwan claimed that Nath Solvent owed ₹32,76,147.07, including the principal amount of ₹24,10,170.96 for the supply of sunflower and mustard seeds, along with interest at 18% per annum. The last delivery was made on 03.08.2016. Nath Solvent had paid ₹7,00,000 as interest for FY 2016-17 but did not pay interest for FY 2017-18, although they deposited TDS of ₹22,240. Jai Bhagwan issued a demand notice on 18.09.2018, which Nath Solvent refused to accept. Nath Solvent contended that Jai Bhagwan had defrauded them by inflating the price

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## Issues and analysis

### Issue 1: Whether the application under …

**Ratio:** Section 9(2) of the Insolvency and Bankruptcy Code, 2016, specifies the requirements for

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**Reasoning:** The court found that the application was complete, as Nath Solvent had accepted almost

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

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**Application:** In this case, the court determined that the application was complete because

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Jai Bhagwan…
- **Respondents:** Nath Solvent…; M/s Nath Solvent…

## Timeline

- **2016-08-03 — Last Del…**: The last delivery of goods (sunflower seeds, mustard seeds) was made by Jai Bhagwan to…
- **2018-09-18 — Demand N…**: Jai Bhagwan issued a demand notice to Nath Solvent for the outstanding amount of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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