# In the matter of Rei Agro Limited. CP 73-2017

> NCLT judgment dated 2017-02-27. Citation: TCN-2017-NCLT-00962. The case involves a Company Petition filed by Operational Creditor, Mr. Surendra Kumar Joshi,…

- **Court:** NCLT
- **Order date:** 27 Feb 2017
- **Citation:** TCN-2017-NCLT-00962
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rei-agro-limited-cp-73-2017-4987d4bd

## Summary

### Background

The case involves a Company Petition filed by Operational Creditor, Mr. Surendra Kumar Joshi, to initiate Corporate Insolvency Resolution Process (CIRP) against REI Agro Limited under the Insolvency and Bankruptcy Code, 2016. The applicant claims default in payment of salary, bonus, leave encashment, and gratuity, totaling Rs. 10,20,437/-. The operational debtor acknowledged the debt but cited financial difficulties and a pending reference before BIFR.

## Facts

Surendra Kumar Joshi, an Operational Creditor, filed a Company Petition to initiate Corporate Insolvency Resolution Process (CIRP) against REI Agro Limited under the Insolvency and Bankruptcy Code, 2016. The application was submitted in form 5. The applicant claimed a default of Rs. 10,20,437/- which included unpaid salary for August 2016 (Rs.60,650/-), bonus from 1.10.15 to 31.08.2016 (Rs.47,690/-), leave encashment from 1.10.15 to 31.08.16 (Rs.47,690/-), and gratuity from 01.04.1993 to 31.08.2016 (Rs.8,64,408/-). The date of default was stated as 31.08.2016. The applicant issued a demand notice on 25.01.2017. REI Agro Limited acknowledged the debt via letter dated 11.09.2016. In response to the demand notice, REI Agro Limited stated that the company was suffering

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## Issues and analysis

### Issue 1: Whether the application by the Operational Creditor to initiate Corporate Insolvency Resolution …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the operational creditor's claim of default, supported by

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**Interpretation:** The court interpreted Section 9 of the IBC, 2016, to mean that if an

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**Application:** The court applied the ratio to the facts by noting that the operational

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## Parties

- **Judges:** Vijai Prata…; S. VIJAYARA…
- **Appellants:** Surendra Kumar…
- **Respondents:** REI Agro L…; Meenakshi…
- **Advocates:** Jishnu Cho…; Swapna Ch…; +3 more

## Timeline

- **2016-08-31 — Date of D…**: The date of default is…
- **2016-09-11 — Acknowledgment…**: REI Agro Limited acknowledged the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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