# In the matter of Om Cotgin Pvt. Ltd. C.P. NO. (IB) 340-9-NCLT-AHM-2019

> NCLT judgment dated 2019-12-11. Citation: TCN-2019-NCLT-00247. Grainspan Nutrients Pvt Ltd, an operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 11 Dec 2019
- **Citation:** TCN-2019-NCLT-00247
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/om-cotgin-pvt-ltd-cp-no-ib-340-9-nclt-ahm-2019-a5804438

## Summary

### Background

Grainspan Nutrients Pvt Ltd, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Om Cotgin Pvt Ltd, the corporate debtor, for non-payment of outstanding dues. Grainspan Nutrients, an agro-based food ingredient company, supplied cattle feed to Om Cotgin, a manufacturer of kapasia khal, cotton seed cake papadi, and cattle feed maize cake. Despite receiving and accepting the goods without dispute, Om Cotgin failed to pay the outstanding invoices. After several reminders, Grainspan Nutrients issued a statutory demand notice as required under Section 8 of the I&B Code.

## Facts

Grainspan Nutrients Pvt Ltd (operational creditor) supplied cattle feed to Om Cotgin Pvt Ltd (corporate debtor). The corporate debtor failed to make payments for invoices dated August 31, 2018, to October 27, 2018, amounting to Rs. 6,60,418. The operational creditor claimed an additional interest of Rs. 65,289, bringing the total outstanding to Rs. 7,25,707. Grainspan Nutrients issued a statutory demand notice on March 27, 2019, after sending several reminders via email. The corporate debtor did not respond to the demand notice or raise any dispute. The operational creditor submitted documents, including affidavits, master data sheets, notices, ledger accounts, and email conversations, as proof of their claim. The corporate debtor remained absent during the proceedings

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' as defined exceeding Rs. 1.00 lac as per Section 4 of the …

**Ratio:** The legal principle is that an operational debt must exist and exceed the threshold of

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**Reasoning:** The court examined the documentary evidence submitted by the operational creditor to

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**Interpretation:** The term 'operational debt' is interpreted as a debt in respect of the

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**Application:** The court found that the debt claimed by Grainspan Nutrients Pvt Ltd, arising

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## Parties

- **Judges:** Manorama…
- **Appellants:** Grainspan…
- **Respondents:** Om Cotgin P…

## Timeline

- **2008-08-13 — Corporate Debtor…**: Om Cotgin Pvt Ltd registered…
- **2012-09-24 — Operational Creditor…**: Grainspan Nutrients Pvt…

## 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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