# In the matter of Sri Murugarajendra Oil Industry Private Limited C.P. (IB) No. 124-BB-2019

> NCLT judgment dated 2019-06-04. Citation: TCN-2019-NCLT-03074. The case involves an application filed by Shri R. Sathyanarayana, an operational creditor,…

- **Court:** NCLT
- **Order date:** 4 Jun 2019
- **Citation:** TCN-2019-NCLT-03074
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-murugarajendra-oil-industry-private-limited-cp-ib-no-124-bb-2019-9a5192d2

## Summary

### Background

The case involves an application filed by Shri R. Sathyanarayana, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Sri Murugarajendra Oil Industry Private Limited, the corporate debtor. The operational creditor claims that the corporate debtor defaulted on a total outstanding amount of Rs. 9,38,068/-. The petitioner is a commission agent for oil, oil seeds, and Bengal gram, and helped the corporate debtor procure these items for commission. The petitioner raised bills for the years 2007 to 2013, which remained unpaid despite repeated reminders. The respondent acknowledged the outstanding amount in a letter dated 15.12.2018, and the petitioner sent a

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## Facts

Shri R. Sathyanarayana, the petitioner, is an operational creditor and proprietor of 'Sai Krupa', engaged in the business of commission agency for oil, oil seeds, and Bengal gram. M/s. Sri Murugarajendra Oil Industry Private Limited, the respondent, is the corporate debtor, incorporated on 10.08.1984. The petitioner claims that the corporate debtor owes him Rs. 9,38,068/- for unpaid commission from 2007 to 2013. The petitioner helped the corporate debtor in procuring oil and oil seeds for commission. The respondent deducted TDS on the commission under Section 192J of the Income Tax Act, 1961. The respondent acknowledged the outstanding amount in a letter dated 15.12.2018. The petitioner sent a demand notice dated 15.02.2019 under Section 8 of the IBC. The petitioner

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor under Section 9 of the IBC is …

**Ratio:** Section 9(5) of the IBC outlines the mandate of the Adjudicating Authority to admit or

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**Reasoning:** The court considered the fact that the debt and default were proved beyond doubt and that

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**Interpretation:** Section 9 of the IBC provides the procedure for initiating CIRP by an

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**Application:** The court applied the provisions of Section 9 of the IBC to the facts of the

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** R. Sathyana…
- **Respondents:** M/s. Sri Murugaraj…

## Timeline

- **1984-08-10 — Incorporation of…**: M/s. Sri Murugarajendra Oil Industry…
- **2007-01-01 — Start of Unpaid…**: The period from which the operational…

## 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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