# In the matter of SNS Starch Limited CP (IB) No. 441-9-HDB-2019

> NCLT judgment dated 2020-09-02. Citation: TCN-2020-NCLT-00736. Vasavi & Co., the Operational Creditor, filed a petition against SNS Starch Limited, the…

- **Court:** NCLT
- **Order date:** 2 Sept 2020
- **Citation:** TCN-2020-NCLT-00736
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sns-starch-limited-cp-ib-no-441-9-hdb-2019-9c4fb8d4

## Summary

### Background

Vasavi & Co., the Operational Creditor, filed a petition against SNS Starch Limited, the Corporate Debtor, to initiate Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Operational Creditor alleged that the Corporate Debtor defaulted in paying Rs. 1,04,72,633/-, comprising a principal amount of Rs. 64,16,888/- and interest of Rs. 40,55,745/- at 18% per annum, for the supply of maize. The Corporate Debtor contested the petition, claiming pre-existing disputes, non-receipt of demand notice, and limitation.

## Facts

Vasavi & Co. (Operational Creditor) claimed SNS Starch Limited (Corporate Debtor) defaulted on a payment of Rs. 1,04,72,633/-, including principal (Rs. 64,16,888/-) and interest (Rs. 40,55,745/- at 18% pa) for maize supply. The Corporate Debtor made a part payment of Rs. 65,00,000/- by 12.05.2016. The Operational Creditor issued a demand notice on 08.04.2019. The Corporate Debtor contended the petition was not maintainable due to pre-existing disputes, non-receipt of demand notice, and limitation. They claimed the invoices were false, the purchase order was for 1500 Metric tons, but only 770 Metric tons were supplied, and debit notes were issued for inferior quality. The Corporate Debtor argued the Operational Creditor inflated the invoice rate. The Operational

…

## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the IBC is maintainable given the Corporate Debtor's claims …

**Ratio:** The existence of a genuine and bona fide dispute is a bar to the admission of a Section 9

…

**Reasoning:** The Tribunal found that the Corporate Debtor's claims of pre-existing disputes were

…

**Interpretation:** The IBC requires a genuine dispute to exist before the initiation of CIRP. The

…

**Application:** In this case, the Tribunal found that the Corporate Debtor's defenses were not

…

## Parties

- **Judges:** Ratakonda…; Veera Brahma Rao…; +1 more
- **Appellants:** Vasavi…
- **Respondents:** SNS Starch…; SNS Starc…

## Timeline

- **2016-05-12 — Part Payment by…**: The Corporate Debtor made a part payment of Rs.…
- **2019-04-08 — Demand Notice…**: The Operational Creditor issued a demand notice to the Corporate Debtor under Section 8…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/sns-starch-limited-cp-ib-no-441-9-hdb-2019-9c4fb8d4