# In the matter of Pratistha Dairy Farms Private Limited Company Petition (IB)No. 90-ALD-2019

> NCLT judgment dated 2021-08-11. Citation: TCN-2021-NCLT-01372. The case involves a petition filed by M/S Baff Engineers Private Limited, the operational…

- **Court:** NCLT
- **Order date:** 11 Aug 2021
- **Citation:** TCN-2021-NCLT-01372
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pratistha-dairy-farms-private-limited-company-petition-ibno-90-ald-2019-72691220

## Summary

### Background

The case involves a petition filed by M/S Baff Engineers Private Limited, the operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/S Pratishtha Dairy Farms Private Limited, the corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for the supply of goods. A purchase order was issued by the corporate debtor and accepted by the operational creditor. The operational creditor issued 17 RA bills, which were certified by the corporate debtor, but a sum of Rs. 16,57,697/- remained unpaid.

## Facts

M/S Baff Engineers Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S Pratishtha Dairy Farms Private Limited (Corporate Debtor). The basis of the petition was the Corporate Debtor's failure to pay an outstanding amount of Rs. 16,57,697/- for goods supplied. A purchase order was issued by the Corporate Debtor on 2015-03-08 and accepted by the Operational Creditor. The Operational Creditor issued 17 RA bills, which were certified by the Corporate Debtor, for a total amount of Rs. 1,21,31,097/-, out of which Rs. 1,04,73,400/- was paid, leaving Rs. 16,57,697/- outstanding. The Operational Creditor issued a demand notice under Section 8 of

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiation …

**Ratio:** Section 9(5) of the Insolvency and Bankruptcy Code, 2016, outlines the conditions for

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**Reasoning:** The Adjudicating Authority observed that the application was complete, the invoice and

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**Interpretation:** Section 9 of the IBC provides the framework for an operational creditor to

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**Application:** In this case, the Adjudicating Authority found that the application was

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** M/S Baff Engineers…
- **Respondents:** M/S Pratishtha…

## Timeline

- **2015-03-08 — Purchase…**: Corporate Debtor issued a purchase order (Ref-PDF/2015/BEPL/103) which was accepted by…
- **2015-10-16 — Invoice Perio…**: Start date of 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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