# In the matter of BUTTON INDUSTRIES PRIVATE LIMITED

> NCLT judgment dated 2025-04-30. Citation: TCN-2025-NCLT-00145. Cropberry Foods Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 30 Apr 2025
- **Citation:** TCN-2025-NCLT-00145
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/button-industries-private-limited-15ff9242

## Summary

### Background

Cropberry Foods Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Button Industries Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The application was based on an alleged default of Rs. 1,92,99,829/-, comprising a principal amount of Rs. 1,86,61,999/- and interest of Rs. 6,37,830/- as of 19.07.2024, calculated at a rate of 24% per annum as per MSME Rules and Regulations. The date of default was stated to be 02.05.2024. Cropberry Foods claimed to have regularly supplied pulses to Button Industries from 02.04.2024 to 28.05.2024, and despite repeated requests, Button Industries failed to make the payments.

## Facts

Cropberry Foods Private Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Button Industries Private Limited, the corporate debtor. Cropberry Foods claimed that Button Industries defaulted on a payment of Rs. 1,92,99,829/-, which included a principal amount of Rs. 1,86,61,999/- and interest of Rs. 6,37,830/- calculated at 24% per annum as per MSME Rules and Regulations as of 19.07.2024. The date of default was stated as 02.05.2024. Cropberry Foods asserted that it supplied pulses to Button Industries from 02.04.2024 to 28.05.2024. Button Industries acknowledged the debt but stated it was unable to pay due to continuous losses and financial difficulties. A demand notice was sent by Cropberry Foods

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor, Cropberry Foods Private Limited, under …

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

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**Reasoning:** The court considered the submissions and documents presented by both parties. The court

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

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**Application:** The court found that Cropberry Foods Private Limited had met the requirements

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Cropberry Foods…
- **Respondents:** Button Industries…

## Timeline

- **2024-04-02 — Supply of…**: Cropberry Foods Private Limited started supplying pulses to Button Industries Private…
- **2024-05-02 — Date of D…**: Button Industries Private Limited defaulted on payments to Cropberry Foods Private…

## 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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