# 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-01669. Aviagen India Poultry Breeding Company Private Limited, the Operational Creditor/Petitioner,…

- **Court:** NCLT
- **Order date:** 18 Jul 2022
- **Citation:** TCN-2022-NCLT-01669
- **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-a0fe6677

## Summary

### Background

Aviagen India Poultry Breeding Company Private Limited, the Operational Creditor/Petitioner, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Hygiene Feeds & Farms Private Limited, the Corporate Debtor/Respondent. 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 had to stop 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/-, consisting of a principal of INR 1,73,09,110/- coupled with interest of Rs.

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## Facts

Aviagen India Poultry Breeding Company Private Limited (Operational Creditor) supplied poultry products to M/s Hygiene Feeds & Farms Private Limited (Corporate Debtor) starting in 2015. The total supply amounted to more than Rs. 4 Crores. In 2017-18, the Operational Creditor stopped supplying due to payment defaults by the Corporate Debtor. As of the petition date, the Corporate Debtor had not made full payment. The outstanding amount claimed by the Operational Creditor is Rs. 2,60,97,973/-, which includes a principal of INR 1,73,09,110/- and interest of Rs. 87,88,863/- calculated from 01.09.2018 to 15.02.2021. The date of default is 01.09.2018. A demand notice was issued on 11.11.2020 and duly acknowledged by the Corporate Debtor. The Corporate Debtor was

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## Issues and analysis

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

**Ratio:** The petitioner placed a written acknowledgement duly received by Corporate Debtor and

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**Reasoning:** The court considered the written acknowledgement and email confirmation from the

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**Interpretation:** The requirement of serving a demand notice is crucial for initiating CIRP.

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**Application:** In this case, the court found that the demand notice was properly served based

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## Parties

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

## Timeline

- **2015-01-01 — Business Relationship…**: Corporate Debtor approached Operational…
- **2017-01-01 — Supply H…**: Operational Creditor stopped…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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