# In the matter of Bhattad Marketing & Distribution Limited

> NCLT judgment dated 2024-06-12. Citation: TCN-2024-NCLT-01174. RK Traders filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 12 Jun 2024
- **Citation:** TCN-2024-NCLT-01174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhattad-marketing-distribution-limited-f9d9657b

## Summary

### Background

RK Traders filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Bhattad Marketing & Distribution Limited, alleging default in repayment of debt amounting to Rs. 1,72,22,648.80/- plus interest @18% from 2019-11-21. The Corporate Debtor contested the petition, citing issues with the quality of goods supplied, discrepancies in invoices, and the absence of an agreement on interest. The Operational Creditor claimed that the Corporate Debtor acknowledged the debt in a Confirmation of Accounts statement.

## Facts

RK Traders (Operational Creditor) filed a petition against Bhattad Marketing & Distribution Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging a default of Rs. 1,72,22,648.80/- plus interest. RK Traders supplied incense sticks to Bhattad Marketing & Distribution Limited between April 2019 and October 2019, raising invoices totaling Rs. 18,92,48,659.80/-. Bhattad Marketing & Distribution Limited made part payments of Rs. 17,19,26,011.00, leaving an outstanding balance of Rs. 1,73,22,648.80. A Confirmation of Accounts statement dated 2023-01-31 acknowledged this outstanding balance. Bhattad Marketing & Distribution Limited claimed the incense sticks were of inferior quality, invoices were inaccurate, and there

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is maintainable under Section 9 of the …

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

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**Reasoning:** The court found that the Corporate Debtor had defaulted on a debt exceeding the threshold

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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 of the case, finding that the debt and

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** RK Tra…
- **Respondents:** Bhattad Marketing…

## Timeline

- **2019-04-01 — Supply of Incen…**: Operational Creditor supplied incense sticks to Corporate Debtor between April 2019 and…
- **2019-10-21 — Last Invoic…**: The last invoice was…

## 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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