# In the matter of R. B. Rice Mills Private Limited Company Petition (IB)No. 154-ALD-2018

> NCLT judgment dated 2018-05-10. Citation: TCN-2018-NCLT-01434. The case involves a petition filed by M/s Aryan Traders, an operational creditor, under Section…

- **Court:** NCLT
- **Order date:** 10 May 2018
- **Citation:** TCN-2018-NCLT-01434
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/r-b-rice-mills-private-limited-company-petition-ibno-154-ald-2018-f93efd72

## Summary

### Background

The case involves a petition filed by M/s Aryan Traders, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s R.B Rice Mills Private Limited, the corporate debtor. The operational creditor claims that the corporate debtor defaulted on payments for goods/raw materials (paddy, grains, etc.) supplied, amounting to Rs. 39,17,188/-. The operational creditor has submitted various documents, including a demand notice, invoices, bank statements, and an affidavit, to support their claim. The corporate debtor did not file a reply to the petition and raised no objection during the argument, accepting the outstanding debt.

## Facts

M/s Aryan Traders, an 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 R.B Rice Mills Private Limited, a corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments for goods/raw materials (paddy, grains, etc.) supplied, amounting to Rs. 39,17,188/-. Shri Nirmal Kumar Gupta, Proprietor of M/s Aryan Traders, was authorized to apply on behalf of the Operational Creditor. The operational creditor submitted a demand notice dated 22.02.2018 along with invoices, which were received by the corporate debtor. The corporate debtor did not issue any notice of dispute or file a reply to the petition. The corporate debtor's

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has met the requirements under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the IBC, 2016, specifies the conditions under which an operational creditor

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**Reasoning:** The court found that the operational creditor had submitted sufficient evidence to

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

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**Application:** In this case, the court applied the provisions of Section 9 of the IBC to the

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## Parties

- **Judges:** SH. V.P.…; Ms Saroj R…
- **Appellants:** M/s Aryan T…
- **Respondents:** M/s R.B Rice…

## Timeline

- **2018-02-22 — Demand Noti…**: Demand Notice issued by the Operational…
- **2018-02-20 — Authorization Letter…**: Authorization letter dated 20.02.2018 to make application on behalf of Operational…

## 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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