# In the matter of Toll Tea Co. Limited CP(IB)No.620-KB-2018

> NCLT judgment dated 2019-10-23. Citation: TCN-2019-NCLT-00849. The case involves an application for the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 23 Oct 2019
- **Citation:** TCN-2019-NCLT-00849
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/toll-tea-co-limited-cpibno620-kb-2018-15a317be

## Summary

### Background

The case involves an application for the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Anita Bhalotia, proprietor of M/s. Reliable Coal Carriers (Operational Creditor), against M/s. Todi Tea Company Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted in paying an operational debt of Rs. 27,40,402/-. The Corporate Debtor raised a defense of a pre-existing dispute and claimed to have paid the entire amount, with only Rs. 16,853/- remaining due. The Operational Creditor argued that the Corporate Debtor committed default in paying operational debt of more than Rs. 1 Lakh despite receiving a demand notice.

## Facts

Anita Bhalotia, the proprietor of M/s. Reliable Coal Carriers (Operational Creditor), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Todi Tea Company Limited (Corporate Debtor) for initiating CIRP. The Operational Creditor claimed that the Corporate Debtor defaulted in paying an operational debt of Rs. 27,40,402/-. The Operational Creditor had supplied coal to the Corporate Debtor between June 2013 and December 2015 and raised invoices. The total outstanding amount was Rs. 42,15,828/-, out of which the Corporate Debtor paid Rs. 14,75,426/-. The Operational Creditor served a demand notice on 18.01.2018 under Section 8 of the IBC, which the Corporate Debtor allegedly did not reply to. The Corporate Debtor argued that there

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** An application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is

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**Reasoning:** The court considered the evidence on record and found that the Operational Creditor had

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

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**Application:** In this case, the court found that the Operational Creditor had met the

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Anita Bha…
- **Respondents:** M/s Todi Tea…
- **Advocates:** Shaunak…; Avik Chau…; +5 more

## Timeline

- **2013-06-01 — Goods Sup…**: Operational Creditor sold and supplied goods (Coal) to the Corporate Debtor between June…
- **2015-12-01 — Goods Sup…**: Operational Creditor sold and supplied goods (Coal) to the Corporate Debtor between June…

## 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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