# In the matter of Shree Meenakshi Food Products Pvt. Ltd. CP(IB) 3895(MB)-2018

> NCLT judgment dated 2019-07-11. Citation: TCN-2019-NCLT-02559. Kousalya Arecanut Trading Company, the Operational Creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 11 Jul 2019
- **Citation:** TCN-2019-NCLT-02559
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-meenakshi-food-products-pvt-ltd-cpib-3895mb-2018-a18a6d6d

## Summary

### Background

Kousalya Arecanut Trading Company, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) to initiate Corporate Insolvency Resolution Process (CIRP) against Shree Meenakshi Food Products Pvt Ltd, the Corporate Debtor. The basis for the petition was the Corporate Debtor's default in payment of ₹27,22,265 against invoices dated 20.7.2013 and 24.7.2013. The Operational Creditor claimed that the Corporate Debtor used to place oral purchase orders for arecanut, which the Petitioner supplied. The Corporate Debtor made a partial payment of Rs.4,99,995 on 28.5.2014, leaving an outstanding amount of Rs.52,22,265. The Operational Creditor issued a demand notice on 25.9.2017. The Corporate Debtor released Rs.25,00,000

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## Facts

Kousalya Arecanut Trading Company (Operational Creditor) filed a petition against Shree Meenakshi Food Products Pvt Ltd (Corporate Debtor) under Section 9 of the I&B Code, 2016, seeking initiation of CIRP. The claim was based on a default of ₹27,22,265 against invoices dated 20.7.2013 and 24.7.2013. The Operational Creditor supplied arecanut to the Corporate Debtor based on oral purchase orders. Invoices were raised for supplies made in 2012-13 and 2013-14. The Corporate Debtor made a partial payment of Rs.4,99,995 on 28.5.2014, leaving an outstanding amount of Rs.52,22,265. A demand notice was issued on 25.9.2017. The Corporate Debtor released Rs.25,00,000 on 7.10.2017 and acknowledged the debt, promising to pay the balance in installments starting from 1.11.2017.

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 9 of the I&B Code, 2016 for initiating CIRP against …

**Ratio:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP against a

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**Reasoning:** The court noted that the application under Section 9 was complete and that the existing

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the

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**Application:** The court found that the Operational Creditor had met the requirements under

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## Parties

- **Judges:** V. P. S…
- **Appellants:** Kousalya Arecanut…
- **Respondents:** Shree Meenakshi…

## Timeline

- **2013-07-20 — Invoice…**: Invoice dated 20.7.2013 raised…
- **2013-07-24 — Invoice…**: Invoice dated 24.7.2013 raised…

## 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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