# 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-03061. The case involves an application filed by Shri R. Sathyanarayana, an operational creditor,…

- **Court:** NCLT
- **Order date:** 4 Jun 2019
- **Citation:** TCN-2019-NCLT-03061
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-murugarajendra-oil-industry-private-limited-cp-ib-no-124-bb-2019-a138b4ac

## 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 claimed a default 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 corporate debtor allegedly defaulted on payments for brokerage bills raised by the petitioner between 2007 and 2013.

## Facts

Shri R. Sathyanarayana, an individual and proprietor of 'Sai Krupa', filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Sri Murugarajendra Oil Industry Private Limited. The petitioner claimed to be an operational creditor, engaged in the business of commission agency for oil, oil seeds, and Bengal gram. The petitioner alleged that the corporate debtor defaulted on payments amounting to Rs.9,38,068/- for brokerage bills raised between 2007 and 2013. The corporate debtor had deducted TDS on the commission under Section 192J of the Income Tax Act, 1961, and had acknowledged the outstanding amount in a letter dated 15.12.2018. The petitioner sent a demand notice dated

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** Section 9(5) of the Insolvency and Bankruptcy Code, 2016 outlines the factors to be

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**Reasoning:** The court considered the petitioner's claim, the respondent's failure to file any

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The court found that the petitioner's application was complete, a debt existed,

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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 Private Limited was incorporated under the provisions…
- **2007-01-01 — Start of Outstanding…**: The Petitioner raised seven bills and one debit note from 2007 to 2013 amounting to…

## 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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