# In the matter of Ado Additives Mfg Private Limited

> NCLT judgment dated 2024-06-05. Citation: TCN-2024-NCLT-01221. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 Jun 2024
- **Citation:** TCN-2024-NCLT-01221
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ado-additives-mfg-private-limited-aa11163b

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Korea Trade Insurance Corporation (Ksure) against Ado Additives MFG Private Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP). Ksure, as the operational creditor, claims that Ado Additives, the corporate debtor, defaulted on payments for goods supplied by M/s Silk Road C&T, Korea, which later assigned its claim to Ksure. The application was filed due to the corporate debtor's failure to pay the outstanding amount despite repeated demands and a statutory notice under Section 8 of the I&B Code.

## Facts

M/s Silk Road C&T, Korea, supplied goods to Ado Additives MFG Private Limited in India. Invoices totaling USD 233,520 were issued for the goods supplied between November 26, 2018, and March 22, 2019, with due dates ranging from March 1, 2019, to June 27, 2019. Ado Additives failed to make full payment for the goods. M/s Silk Road C&T assigned its claim to Korea Trade Insurance Corporation (Ksure) on September 17, 2020. Ksure informed Ado Additives of the assignment and demanded payment. Ado Additives made a partial payment of USD 21,840 on October 6, 2021, but the outstanding amount remained unpaid. Ksure issued a statutory notice of demand under Section 8 of the I&B Code on September 15, 2021. Ado Additives failed to fully respond to the notice. Ksure

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## Issues and analysis

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

**Ratio:** The application under Section 9 is maintainable if the operational creditor demonstrates

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**Reasoning:** The court considered the arguments presented by both parties and examined the evidence on

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**Interpretation:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP

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**Application:** The court found that the operational creditor had demonstrated the existence of

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Korea Trade…
- **Respondents:** ADO ADDITIVES MFG…

## Timeline

- **2018-11-26 — Invoices…**: M/s Silkroad C&T raised invoices for the supply of goods from Korea to India between…
- **2020-09-17 — Assignment o…**: M/s Silk Road C&T assigned its claim to…

## 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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