# In the matter of Divya Agro Chem Private Limited CP (IB) No. 1282-MB-IV-2021

> NCLT judgment dated 2023-02-24. Citation: TCN-2023-NCLT-04470. The case pertains to an application filed by Mahamaya Lifesciences Private Limited, the…

- **Court:** NCLT
- **Order date:** 24 Feb 2023
- **Citation:** TCN-2023-NCLT-04470
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/divya-agro-chem-private-limited-cp-ib-no-1282-mb-iv-2021-aa543f30

## Summary

### Background

The case pertains to an application filed by Mahamaya Lifesciences Private Limited, the Operational Creditor/Applicant, under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Divya Agro Chem Private Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a total amount of Rs.2,52,98,098/- along with interest @18% p.a. in relation to supplies of agro-chemical products made from 25.09.2017 to 09.02.2018. The invoices were in default from 24.12.2017 to 10.04.2018. The Operational Creditor issued legal notices under Section 138 of the Negotiable Instruments Act, 1881, after the dishonor of cheques issued by the Corporate Debtor. Part payments were made by the Corporate Debtor during

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## Facts

Mahamaya Lifesciences Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Divya Agro Chem Private Limited (Corporate Debtor) for initiating CIRP. The claim was for Rs.2,52,98,098/- plus 18% interest p.a., related to supplies of agro-chemical products from 25.09.2017 to 09.02.2018. The invoices defaulted between 24.12.2017 and 10.04.2018. The Operational Creditor sent a ledger reconciliation on 28.08.2018. The Corporate Debtor issued an email on 06.09.2018 about issuing Post Dated Cheques (PDCs). Eight PDCs were issued between September and October 2018 but were dishonored due to insufficient funds. Legal notices were issued under Section 138 of the Negotiable Instruments Act on 16.10.2018

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the I&B Code is …

**Ratio:** Section 9 of the I&B Code allows an operational creditor to initiate CIRP against a

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**Reasoning:** The court found that the Operational Creditor had followed the procedure prescribed under

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

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**Application:** The Operational Creditor, Mahamaya Lifesciences, properly invoked Section 9

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Mahamaya Lifescien…
- **Respondents:** Divya Agro Chem…

## Timeline

- **2017-09-25 — Start of Suppl…**: The Operational Creditor started supplying…
- **2018-02-09 — End of Supply…**: The Operational Creditor ended the supply of agro-chemical products to the Corporate…

## 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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