# In the matter of VHV Beverages Private Limited IB No. 1680-ND-2019

> NCLT judgment dated 2021-12-09. Citation: TCN-2021-NCLT-00213. AMD Industries Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 9 Dec 2021
- **Citation:** TCN-2021-NCLT-00213
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vhv-beverages-private-limited-ib-no-1680-nd-2019-8336b6c5

## Summary

### Background

AMD Industries Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against VHV Beverages Private Limited. The petition was based on the alleged default in payment for goods supplied by AMD Industries to VHV Beverages. The details of the transactions leading to the filing of the petition include the corporate debtor being indebted to a sum of Rs. 3,19,82,394/- towards supply of goods on various dates, which includes interest upto 31.03.2019 at the agreed rate in terms of the MOU executed between the parties dated 16.02.2018 along with unpaid accumulated interest of Rs. 10,09,417/- at the rate of 12% per annum on account of having purchase material from the

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## Facts

AMD Industries Limited (the applicant/operational creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against VHV Beverages Private Limited (the respondent/corporate debtor). The basis of the petition was the alleged default in payment for goods supplied by AMD Industries to VHV Beverages. The outstanding amount claimed was Rs. 3,19,82,394/-, including interest up to 31.03.2019, as per a Memorandum of Understanding (MOU) dated 16.02.2018. The applicant claimed that the corporate debtor had issued two cheques for Rs. 10,00,000/- each, which were dishonored due to 'Insufficient Funds'. A demand notice was sent on 20.05.2019. The respondent raised objections, alleging faulty

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the …

**Ratio:** The Hon'ble Supreme Court in Mobilox Innovative Pvt. Ltd. Vs. Kirusa Software Pvt. Ltd.

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**Reasoning:** The court reasoned that the corporate debtor had already signed a MOU admitting its

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**Interpretation:** The interpretation of the law is that if there is an admitted debt and default,

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**Application:** In this case, since the corporate debtor had admitted its liability in the MOU,

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## Parties

- **Judges:** DHARMINDER…; Prasanta Kumar…
- **Appellants:** AMD Industries…
- **Respondents:** VHV Beverages…; M/s. VHV Beverages…

## Timeline

- **2018-02-16 — MOU Exec…**: A Memorandum of Understanding (MOU) was executed between AMD Industries Limited and VHV…
- **2019-03-31 — Interest Calc…**: Interest calculated up to this date was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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