# In the matter of Jindal Agro Mills Pvt. Ltd. CP (IB) No. 334-Chd-Pb-2019

> NCLT judgment dated 2023-06-02. Citation: TCN-2023-NCLT-03093. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s…

- **Court:** NCLT
- **Order date:** 2 Jun 2023
- **Citation:** TCN-2023-NCLT-03093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jindal-agro-mills-pvt-ltd-cp-ib-no-334-chd-pb-2019-afe402d3

## Summary

### Background

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s S.K. Yarns, the Operational Creditor, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Jindal Agro Mills Pvt. Ltd., the Corporate Debtor. The Operational Creditor and Corporate Debtor were in business dealing with MEIS/DFRC Licenses. The dispute arose from non-payment of Rs. 31,45,805/- against the last invoice dated 13.07.2016. The Corporate Debtor failed to pay despite repeated requests. The Corporate Debtor claimed a pre-existing dispute, citing pending civil suits and criminal complaints.

## Facts

M/s S.K. Yarns, the 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 Jindal Agro Mills Pvt. Ltd., the Corporate Debtor. The dispute arose from the non-payment of Rs. 31,45,805/- against the last invoice dated 13.07.2016. The Operational Creditor claimed a total amount of Rs. 53,83,531/- including interest. The Corporate Debtor argued that there was a pre-existing dispute, supported by evidence of civil suits, criminal complaints, and objections raised at various authorities since 2016-18. The Corporate Debtor also contended that the licenses sold by the Operational Creditor were bogus and invalid, attracting scrutiny from customs authorities. The

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## Issues and analysis

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

**Ratio:** The demand notice was considered properly served if it was issued by the operational

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**Reasoning:** The court noted that the demand notice dated 13.03.2019 was issued by the operational

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**Interpretation:** The service of demand notice is a crucial step in initiating CIRP under Section

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**Application:** In this case, the demand notice was deemed properly served because the

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** M/s S.K.…
- **Respondents:** M/s Jindal Agro…
- **Advocates:** Vikas…; Amrinder…

## Timeline

- **2016-07-13 — Date of Last…**: Date of the last invoice for which payment was…
- **2017-04-29 — Complaint to Economics…**: The Operational Creditor filed a…

## 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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