# In the matter of Cane Agro Energy (India) Limited

> NCLT judgment dated 2023-12-22. Citation: TCN-2023-NCLT-00008. The case involves an application (I.A. No. 1621 of 2021) filed by Anil Goel, the liquidator of…

- **Court:** NCLT
- **Order date:** 22 Dec 2023
- **Citation:** TCN-2023-NCLT-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cane-agro-energy-india-limited-e4a8e32b

## Summary

### Background

The case involves an application (I.A. No. 1621 of 2021) filed by Anil Goel, the liquidator of Rotomac Global Private Limited, seeking directions against Ritesh R. Mahajan, the Interim Resolution Professional (IRP) of Cane Agro Energy (India) Limited. The applicant sought to be recognized as a financial creditor in the Corporate Insolvency Resolution Process (CIRP) of Cane Agro Energy, claiming a debt of Rs. 28,13,97,644/- based on advances given by Rotomac Global Private Limited. The IRP rejected the claim, leading to the application before the NCLT.

## Facts

Rotomac Global Private Limited, now in liquidation, advanced Rs. 28,13,97,644/- to Cane Agro Energy (India) Limited for the supply of sugar. A Memorandum of Understanding (MOU) dated 11.06.2013 was executed between the parties. As per the MOU, Cane Agro Energy issued post-dated cheques as security and provided a performance guarantee of Rs.74.80 Lakh. Cane Agro Energy defaulted on the sugar supply, and the cheques were dishonored. Rotomac Global Private Limited initiated CIRP against Cane Agro Energy by filing CP 1279 of 2017, but the application was withdrawn following a settlement agreement dated 12.09.2017. The settlement involved the issuance of new post-dated cheques, which were again dishonored. The liquidator of Rotomac Global Private Limited, Anil Goel, filed a

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## Issues and analysis

### Issue 1: Whether the advance payment made by Rotomac Global Private Limited to Cane Agro Energy for the …

**Ratio:** Advance payment made to a corporate debtor for the supply of goods or services is

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**Reasoning:** The NCLT relied on the Supreme Court's judgment in M/s Consolidated Construction V/s M/s

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**Interpretation:** The interpretation of 'financial debt' versus 'operational debt' hinges on the

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**Application:** In this case, the advance payment was explicitly for the supply of sugar. Even

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** ASREC (Indi…
- **Respondents:** Cane Agro Energy…; M/s Cane Agro…

## Timeline

- **2013-06-11 — MOU Exec…**: Rotomac Global Private Limited and Cane Agro Energy (India) Limited entered into a…
- **2013-06-01 — Last Installmen…**: The last installment of Rs.6 Crore was paid to the Corporate Debtor in the third week of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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