# In the matter of Hanson Agro Limited CP (IB) No. 283-Chd-Pb-2019

> NCLT judgment dated 2023-04-20. Citation: TCN-2023-NCLT-03712. M/s Vijay Paints & Chemicals, the operational creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 20 Apr 2023
- **Citation:** TCN-2023-NCLT-03712
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hanson-agro-limited-cp-ib-no-283-chd-pb-2019-67bbbbd9

## Summary

### Background

M/s Vijay Paints & Chemicals, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Hanson Agro Limited, the corporate debtor, due to unpaid operational debt. The operational creditor claimed that the corporate debtor defaulted on payments for goods delivered between 24.07.2018 and 26.09.2018. The corporate debtor contested the petition, alleging that the goods supplied were of poor quality and that there was pending litigation in the Commercial Court. The Adjudicating Authority examined the issues of whether the demand notice was valid, whether there was a pre-existing dispute, and whether the application was filed within the limitation period.

## Facts

M/s Vijay Paints & Chemicals (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Hanson Agro Limited (Corporate Debtor) for unpaid operational debt. The Operational Creditor supplied Ethyl Acetate to the Corporate Debtor, promising payment against each invoice after delivery. Goods were delivered between 24.07.2018 and 26.09.2018, but payment was not received. The Corporate Debtor made payments via electronic transfer or cheques against invoices. A partial payment of Rs. 30,568/- was received against invoice B89, but no further payments were made. The amount claimed to be in default is Rs. 2,10,896/-, with the default occurring on 24.07.2018. The Operational Creditor issued a demand notice dated

…

## Issues and analysis

### Issue 1: Whether the demand notice in Form 3 & 4 dated 26.03.2019 is stated to be issued by the …

**Ratio:** The demand notice must be served on the corporate debtor as per the requirements of

…

**Reasoning:** The court considered the evidence of service of the demand notice, including postal

…

**Interpretation:** The demand notice is a crucial step in initiating the CIRP. It informs the

…

**Application:** The court found that the demand notice was duly served on the corporate debtor,

…

## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s Vijay Paints…
- **Respondents:** M/s Hanson Agro…

## Timeline

- **1993-05-11 — Incorporation of…**: M/s Hanson Agro Limited…
- **2018-07-24 — Default…**: Date from which Bill No. B89 became…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hanson-agro-limited-cp-ib-no-283-chd-pb-2019-67bbbbd9