# in the matter of Nutri First Agro International Pvt. Ltd. CP No. 1088-MAH-2017

> NCLT judgment dated 2017-07-31. Citation: TCN-2017-NCLT-00678. This case involves a Company Petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 31 Jul 2017
- **Citation:** TCN-2017-NCLT-00678
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nutri-first-agro-international-pvt-ltd-cp-no-1088-mah-2017-1834898a

## Summary

### Background

This case involves a Company Petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) by Power House, an Operational Creditor, against Nutri First Agro International Pvt. Ltd., the Corporate Debtor. Power House claimed that Nutri First Agro International Pvt. Ltd. had availed supply of goods and labor services valuing ₹55,28,864 but failed to make the full payment, except for ₹6,75,000. The Operational Creditor filed the petition to initiate the Insolvency Resolution Process against the Corporate Debtor, claiming a default of ₹48,53,864 as of 02.07.2016.

## Facts

Power House, an Operational Creditor, is in the business of electrical works and labor supply. Nutri First Agro International Pvt. Ltd., the Corporate Debtor, approached Power House with a purchase order dated 2015-11-27 for electrical material worth ₹25,31,250. The payment terms included an advance, payments after inspection, and a final payment after installation. Power House issued proforma invoices and conducted a joint inspection on 2016-03-11, after which the Corporate Debtor instructed Power House to dispatch the panel. Delivery challans dated 2016-03-16 were obtained. A tax invoice was raised on 2016-04-13 for ₹25,31,250, with a 24% interest per annum clause for late payments. The Corporate Debtor issued another purchase order on 2016-03-29 for ₹19,25,085.20.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) allows for the initiation of corporate

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**Reasoning:** The court found that the Corporate Debtor had availed goods and services from the

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**Interpretation:** The IBC defines 'default' as non-payment of debt when whole or any part or

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**Application:** The court applied the definition of 'default' under the IBC to the facts of the

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Power H…
- **Respondents:** Nutri First Agro…

## Timeline

- **2015-11-27 — Purchase…**: Corporate Debtor issued purchase order for…
- **2015-12-01 — Partial P…**: Corporate Debtor made a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/nutri-first-agro-international-pvt-ltd-cp-no-1088-mah-2017-1834898a