# In the matter of Nithin Grains and Mills Private Limited CP (IB) No. 319-09-HDB-2017

> NCLT judgment dated 2018-03-22. Citation: TCN-2018-NCLT-01658. The case involves a Company Petition filed by M/s Vishwabharti Foods Private Limited…

- **Court:** NCLT
- **Order date:** 22 Mar 2018
- **Citation:** TCN-2018-NCLT-01658
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nithin-grains-and-mills-private-limited-cp-ib-no-319-09-hdb-2017-034ed4cf

## Summary

### Background

The case involves a Company Petition filed by M/s Vishwabharti Foods Private Limited (Operational Creditor) against M/s. Nithin Grains and Mills Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and Corporate Debtor were in a business dealing for almost 4 years, with the Corporate Debtor purchasing goods packed on their behalf from the Operational Creditor, who supplied costly packing material bearing the trade mark "Varshi". A dispute arose regarding the quality of goods supplied and payments due.

## Facts

M/s Vishwabharti Foods Private Limited (Operational Creditor) filed a Company Petition against M/s. Nithin Grains and Mills Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The two companies had a business relationship for approximately four years. The Corporate Debtor purchased goods from the Operational Creditor, who also supplied packing material with the trademark "Varshi". An agreement was made for the purchase of 400 Mts of Atta in 5 Kg packets for supply to the Civil Supplies Department, State of Andhra Pradesh, with a total value of Rs. 1,13,42,275.00. The agreement stipulated that the Petitioner would be liable if the Civil Supply Department rejected any delayed goods. The Petitioner allegedly supplied

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## Issues and analysis

### Issue 1: Whether the CP(IB) No.319/09/HDB/2017 filed under section 9 of IBC can be admitted, considering the …

**Ratio:** The legal principle applied is that under Section 9 of the IBC, a petition can be

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**Reasoning:** The court reasoned that based on the material and documents filed, the Corporate Debtor

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**Interpretation:** Section 9 of the IBC requires the Adjudicating Authority to determine whether a

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**Application:** The court applied the ratio to the facts by noting the absence of a denial of

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## Parties

- **Judges:** Rajeswara Rao…
- **Appellants:** M/s Vishwabharti…
- **Respondents:** Nithin Grains and…
- **Advocates:** Mr.Manav Gecil…; Yasmine Moh…

## Timeline

- **2017-09-21 — Demand Notice…**: The Operational Creditor issued a demand notice to the Corporate Debtor under I&B rules,…
- **2017-09-28 — Corporate Debto…**: The Corporate Debtor replied to the demand notice, denying the contentions made by 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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