# In the matter of Agson Global Private Limited

> NCLT judgment dated 2023-12-07. Citation: TCN-2023-NCLT-00359. The application was filed by the Applicant/Corporate Debtor under Rule 11 of the National…

- **Court:** NCLT
- **Order date:** 7 Dec 2023
- **Citation:** TCN-2023-NCLT-00359
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/agson-global-private-limited-c0bcca9d

## Summary

### Background

The application was filed by the Applicant/Corporate Debtor under Rule 11 of the National Company Law Tribunals Rules, 2016, seeking to allow the present application and take on record the Settlement Agreement entered between the parties. The main petition, CP IB – 535 (ND) 2022, titled “Prodalim B.V vs. Agson Global Private Limited” under Section – 9 of the IBC, 2016, was to be dismissed on account of the settlement. Prodalim B.V., an operational creditor based in the Netherlands, had a sales contract with Agson Global Private Limited, the corporate debtor, for the delivery of D-Limonene. The corporate debtor defaulted on payments for three shipments of D-Limonene, leading to a principal sum in default of USD 211,668. During the pendency of the main petition, the

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## Facts

Prodalim B.V. (Operational Creditor), based in the Netherlands, entered into a sales contract with Agson Global Private Limited (Corporate Debtor), based in New Delhi, for the supply of D-Limonene. The Corporate Debtor placed an order for D-Limonene, which is extracted from citrus fruits. A Purchase Order No.002/2021/PRODALIM/D-LIMONENE was executed for 10 shipments of containers of D-Limonene. Seven shipments were completed as per the agreed CAD arrangement. Three shipments, amounting to 45.52 metric tonnes, were delivered, but the Corporate Debtor defaulted on payments, resulting in a principal sum in default of USD 211,668 (equivalent to INR 1,57,83,448 as of 05.10.2021). During the pendency of the main petition IB – 535 (ND) 2022, the parties entered into a

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## Issues and analysis

### Issue 1: Whether the outstanding debt claimed in the application falls under the definition of Operational …

**Ratio:** The ratio is that a debt arising from the breach of a Settlement Agreement does not

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**Reasoning:** The court reasoned that the debt claimed was not owed for the supply of goods or

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**Interpretation:** This means that for a debt to be considered an Operational Debt under the IBC,

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**Application:** In this case, the debt claimed was based on the Corporate Debtor's failure to

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Respondents:** Agson Global…; M/s. PRODAL…
- **Advocates:** Anindita Roy…; Sumit K.…

## Timeline

- **2021-03-09 — Sales Con…**: The Corporate Debtor entered into a sales contract No. 21200174 with the Operational…
- **2021-10-05 — Default on P…**: The Corporate Debtor defaulted on payments for three shipments of D-Limonene, resulting…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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