# In the matter of Hygiene Feeds & Farms Private Limited CP (IB) No.125-Chd-Hry-2021

> NCLT judgment dated 2022-07-18. Citation: TCN-2022-NCLT-01661. The case involves a petition filed by Aviagen India Poultry Breeding Company Private Limited…

- **Court:** NCLT
- **Order date:** 18 Jul 2022
- **Citation:** TCN-2022-NCLT-01661
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hygiene-feeds-farms-private-limited-cp-ib-no125-chd-hry-2021-988a4ac5

## Summary

### Background

The case involves a petition filed by Aviagen India Poultry Breeding Company Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Hygiene Feeds & Farms Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted in making payments for poultry products supplied since 2015. The Corporate Debtor failed to make full payment despite repeated occasions of default, leading the Operational Creditor to stop supply in 2017-18. The petition was filed due to an outstanding debt of Rs. 2,60,97,973/-.

## Facts

Aviagen India Poultry Breeding Company Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Hygiene Feeds & Farms Private Limited (Corporate Debtor). The Corporate Debtor approached the Operational Creditor in 2015 for the supply of poultry products, primarily parent stock chicks. The Operational Creditor supplied stock worth more than Rs. 4 Crores. In 2017-18, the Operational Creditor stopped the supply due to the Corporate Debtor's default in making payments. The amount claimed to be in default is Rs. 2,60,97,973/-, which includes a principal of Rs. 1,73,09,110/- and interest of Rs. 87,88,863/- calculated from 01.09.2018 to

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## Issues and analysis

### Issue 1: Whether the demand notice in Form 3 …

**Ratio:** The service of a demand notice is a mandatory requirement under Section 8 of the IBC

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**Reasoning:** The court considered the written acknowledgement of the demand notice received by the

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**Interpretation:** The demand notice serves as a formal communication to the corporate debtor,

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**Application:** The petitioner placed a written acknowledgement duly received by Corporate

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Aviagen India…
- **Respondents:** M/s Hygiene Feeds…

## Timeline

- **2015-01-01 — Business Rela…**: Corporate Debtor approached Operational…
- **2017-01-01 — Supply H…**: Operational Creditor had to stop the supply as the Corporate Debtor defaulted in making…

## 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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