# In the matter of Umachi Foods and Commodities Pvt. Ltd. Company Petition No. IB-1422-ND-2018

> NCLT judgment dated 2019-08-19. Citation: TCN-2019-NCLT-01929. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 19 Aug 2019
- **Citation:** TCN-2019-NCLT-01929
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/umachi-foods-and-commodities-pvt-ltd-company-petition-no-ib-1422-nd-2018-66c08763

## Summary

### Background

The application was filed 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, by M/s Ganesh Rice & General Industries (Operational Creditor) to initiate the Corporate Insolvency process against M/s Umachi Foods and Commodities Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor approached them for the purchase of Basmati Sella Rice, and it was orally agreed that payment would be made promptly upon receipt of goods and invoices. The Operational Creditor supplied the goods and raised invoices, which were received and acknowledged by the Corporate Debtor. Despite requests and reminders, the Corporate Debtor failed to pay

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## Facts

M/s Ganesh Rice & General Industries (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Umachi Foods and Commodities Pvt. Ltd. (Corporate Debtor) for an operational debt. The Corporate Debtor approached the Operational Creditor for the purchase of Basmati Sella Rice, with an oral agreement for timely payment upon receipt of goods and invoices. The Operational Creditor supplied the goods and raised invoices, which were received and acknowledged by the Corporate Debtor. The Corporate Debtor failed to make payments despite requests and reminders. The Operational Creditor sent a demand notice dated 27.07.2018 under Section 8 of the IBC, 2016, for Rs. 82,00,000/-, including principal and interest. The

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute between the Operational Creditor and the Corporate Debtor …

**Ratio:** The Hon'ble Supreme Court in “Innoventive Industries Ltd.(Supra)" held that a

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**Reasoning:** The court observed that the Corporate Debtor did not raise the issue of non-supply of

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**Interpretation:** The legal issue revolves around the interpretation of 'pre-existing dispute'

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**Application:** Applying the ratio to the facts, the court found that the Corporate Debtor's

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## Parties

- **Judges:** DEEPTI M…; Pradeep R.…
- **Appellants:** M/s GANESH RICE &…
- **Respondents:** M/s. Umachi Foods…
- **Advocates:** Sameer…; A.K. G…

## Timeline

- **2018-07-27 — Demand Notice…**: The Operational Creditor sent a demand notice under Section 8 of the Insolvency and…
- **2018-07-27 — Corporate Debto…**: The Corporate Debtor replied to the demand notice, disputing the amount claimed by the…

## 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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