# In the matter of Jammu and Kashmir Cements Limited

> NCLT judgment dated 2023-08-22. Citation: TCN-2023-NCLT-01969. Konkan Agro Marine Industries Private Limited, the operational creditor/petitioner, filed a…

- **Court:** NCLT
- **Order date:** 22 Aug 2023
- **Citation:** TCN-2023-NCLT-01969
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jammu-and-kashmir-cements-limited-6e2edf0a

## Summary

### Background

Konkan Agro Marine Industries Private Limited, the operational creditor/petitioner, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jammu and Kashmir Cements Limited, the corporate debtor/respondent. The operational creditor claimed that the corporate debtor defaulted on payments for the supply of imported coal. The corporate debtor floated a tender for the purchase of imported coal, and the operational creditor was a successful bidder. The petitioner supplied coal to the corporate debtor based on purchase orders, and a running account was maintained since 2017. The corporate debtor made partial payments but failed to pay the outstanding amount. The petitioner issued a

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## Facts

Konkan Agro Marine Industries 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 Jammu and Kashmir Cements Limited (Corporate Debtor). The Corporate Debtor floated a tender for the purchase of imported coal, and the Operational Creditor was a successful bidder. The Operational Creditor supplied coal to the Corporate Debtor based on purchase orders, maintaining a running account since 2017. The last payment was received on 2020-06-19. The Corporate Debtor acknowledged an outstanding amount of Rs.4,31,42,485/- via letter dated 2021-01-11. The amount claimed to be in default is Rs.4,33,04,721/-, with the default occurring on 2018-08-06. A

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## Issues and analysis

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

**Ratio:** Service of notice to the registered office of the corporate debtor is considered

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**Reasoning:** The Adjudicating Authority considered the clarification from the petitioner that the

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**Interpretation:** The interpretation of service requirements under the IBC emphasizes delivery to

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**Application:** Despite the initial return of the demand notice, the fact that it was delivered

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Konkan Agro…
- **Respondents:** Jammu and Kashmir…

## Timeline

- **2017-01-01 — Transaction…**: Operational creditor regularly transacting…
- **2018-08-06 — Default…**: The default occurred on 2018-08-06 i.e. the date on which the last purchase order was…

## 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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