# In the matter of AGRS Projects LLP CP (IB) No. 21-9-AMR-2020

> NCLT judgment dated 2022-01-18. Citation: TCN-2022-NCLT-04432. Dalmia Cement (Bharat) Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 18 Jan 2022
- **Citation:** TCN-2022-NCLT-04432
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/agrs-projects-llp-cp-ib-no-21-9-amr-2020-92a0677c

## Summary

### Background

Dalmia Cement (Bharat) Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against AGRS Projects LLP. The operational creditor claimed that the corporate debtor defaulted in making payment of Rs.1,72,93,695/-, which included interest towards invoices raised against the cement supplied. The petition was filed due to the corporate debtor's failure to pay 82 invoices out of a total of 211 invoices raised for the supply of cement.

## Facts

Dalmia Cement (Bharat) Limited, an operational creditor, supplied cement to AGRS Projects LLP, the corporate debtor. A total of 211 invoices were raised, but the corporate debtor failed to pay 82 invoices, resulting in outstanding dues of Rs.1,72,93,695/-, including interest. The operational creditor issued a demand notice, but the corporate debtor did not respond. An email dated 16.10.2019 from the corporate debtor admitted the debt and promised payment in installments, but this undertaking was not fulfilled. The corporate debtor failed to file a counter despite multiple adjournments, leading the tribunal to forfeit their right to do so. The operational creditor did not suggest any name as Insolvency Resolution Professional (IRP) and sought the Tribunal to appoint an

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## Issues and analysis

### Issue 1: Whether the application filed by Dalmia Cement (Bharat) Limited under Section 9 of the Insolvency …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court noted that the Corporate Debtor failed to respond to the demand notice and

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts, noting that the Corporate Debtor

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## Parties

- **Judges:** TELAPROLU…
- **Appellants:** Dalmia Cements…
- **Respondents:** AGRS Projec…

## Timeline

- **2019-08-10 — Proposed Payment Start…**: Corporate Debtor undertakes to pay the debt in three installments starting from this date…
- **2019-10-16 — Email Admissio…**: The Corporate Debtor admits the debt and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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