# In the matter of South Indian Mint and Aromatic Products Ltd. CP-341-(IB)-2018

> NCLT judgment dated 2018-06-04. Citation: TCN-2018-NCLT-01332. The case involves an application filed by Gangai Earth Movers, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 4 Jun 2018
- **Citation:** TCN-2018-NCLT-01332
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/south-indian-mint-and-aromatic-products-ltd-cp-341-ib-2018-1065b7e3

## Summary

### Background

The case involves an application filed by Gangai Earth Movers, an operational creditor, against South Indian Mint and Aromatic Products Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The operational creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, declare a moratorium, and appoint an Interim Resolution Professional (IRP). The corporate debtor failed to pay an outstanding debt of Rs.7,75,000/- as of 30.06.2017.

## Facts

Gangai Earth Movers (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against South Indian Mint and Aromatic Products Limited (Corporate Debtor) for defaulting on a payment of Rs.7,75,000/- as of 30.06.2017. The debt arose from a work order issued by the Corporate Debtor to the Operational Creditor for removing thorny bushes and jungle clearance of approximately 125 acres, costing Rs.8,75,000/-. The Operational Creditor completed the work and raised an invoice after deducting an advance of Rs.1 Lakh. The Corporate Debtor acknowledged the liability in a letter dated 07.07.2017. The Operational Creditor sent a letter on 01.11.2017 requesting payment, but received no reply. A demand notice was sent on 07.11.2017 under

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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 Insolvency and Bankruptcy Code, 2016, outlines the conditions for an

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**Reasoning:** The court reasoned that the Operational Creditor had complied with the requirements of

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**Interpretation:** Section 9 is interpreted to mean that if an operational creditor demonstrates

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**Application:** In this case, the Operational Creditor demonstrated the existence of a debt

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## Parties

- **Judges:** CH. MOHD SHARIEF…
- **Appellants:** Gangai Earth…
- **Respondents:** South Indian Mint…; South Indian and…
- **Advocates:** N.A.S. Ri…; J.Nithyan…

## Timeline

- **2017-06-30 — Default…**: Corporate Debtor failed to pay…
- **2017-07-07 — Acknowledgement of…**: Corporate Debtor acknowledged…

## 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)

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