# In the matter of Choudhary Brother Agri Export Private Limited

> NCLT judgment dated 2023-07-12. Citation: TCN-2023-NCLT-02557. The case involves an application filed by Arun Kaushal & Anr. (Operational…

- **Court:** NCLT
- **Order date:** 12 Jul 2023
- **Citation:** TCN-2023-NCLT-02557
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/choudhary-brother-agri-export-private-limited-096306f3

## Summary

### Background

The case involves an application filed by Arun Kaushal & Anr. (Operational Creditors/Applicants) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Choudhary Brothers Agri Export Pvt. Ltd. (Corporate Debtor/Respondent). The applicants leased a unit to the corporate debtor for a monthly rent. The corporate debtor defaulted on payments, leading to the application. The corporate debtor raised disputes regarding vacating the premises, payments, and the maintainability of the application under the IBC.

## Facts

Arun Kaushal & Anr. (Operational Creditors) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Choudhary Brothers Agri Export Pvt. Ltd. (Corporate Debtor). The applicants leased a unit to the corporate debtor for a monthly rent of Rs. 76,505/- for 3 years, starting from 26.04.2017. The Corporate Debtor allegedly defaulted on rent and maintenance payments, leading to a total claim of Rs. 14,21,809.96/- inclusive of interest. The applicants sent a demand notice dated 22.07.2019. The Corporate Debtor replied on 27.07.2019, claiming the premises were vacated on 12.11.2018, and all payments were cleared. The Corporate Debtor also argued that the rent payment does not fall

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditors under Section 9 of the IBC is …

**Ratio:** Section 9 of the IBC requires that there be no pre-existing dispute for an application to

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had raised a dispute regarding

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**Interpretation:** The existence of a 'dispute' under Section 8(2)(a) of the IBC is interpreted

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**Application:** In this case, the Corporate Debtor's contention that the premises were vacated

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## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** Arun Ka…
- **Respondents:** CHOUDHARY…

## Timeline

- **2017-04-26 — Lease Deed Ag…**: Applicants and Respondent entered into a Lease Deed Agreement where the Applicants leased…
- **2018-03-01 — Default Occ…**: The default in payment of rent…

## 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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