# In the matter of Kino Organics (India) Limited

> NCLT judgment dated 2023-11-07. Citation: TCN-2023-NCLT-00840. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 7 Nov 2023
- **Citation:** TCN-2023-NCLT-00840
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kino-organics-india-limited-a7868d6f

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/S. Insecticides (India) Limited (Operational Creditor) against M/S Kino Organics (India) Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP) due to default in payment of an outstanding amount of Rs. 13,48,942/-. The default date was 06.01.2017. The Operational Creditor supplied Paraquat Dichloride, Thiamethoxam, and other agro items to the Corporate Debtor. Despite repeated reminders and demand notices, the Corporate Debtor failed to pay the outstanding amount.

## Facts

M/S. Insecticides (India) Limited (Operational Creditor) supplied Paraquat Dichloride, Thiamethoxam, and other agro items to M/S Kino Organics (India) Limited (Corporate Debtor), formerly known as M/s Lordsons Agro Overseas Private Limited, since 2016. The total amount of goods supplied was Rs. 18,75,353/-, out of which Rs. 5,52,425/- was paid, leaving a balance of Rs. 13,22,928/-. The Operational Creditor served a demand notice on 12.04.2018 for Rs. 13,22,928/- with interest. The Corporate Debtor paid Rs. 6,26,234/-. Another demand notice was served on 04.11.2019. The application was filed on 14.01.2020. The date of default was 06.01.2017. The Corporate Debtor made some payments between 27.04.2018 and 04.12.2018. The outstanding amount, including interest, was Rs.

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## Issues and analysis

### Issue 1: Whether the debt against the goods supplied falls within the definition of Operational Debt under …

**Ratio:** Operational debt is defined under Section 5(21) of the Code as 'a claim in respect of

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**Reasoning:** The invoices against which the debt is outstanding are raised for the supply of Paraquat

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**Interpretation:** The definition of operational debt is interpreted broadly to include debts

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**Application:** The debt in this case qualifies as an operational debt because it arises from

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## Parties

- **Judges:** Sh. Praveen…; Sh. Ashish…
- **Appellants:** M/S. Insecticides…
- **Respondents:** M/S Kino Organics…

## Timeline

- **2017-01-06 — Date of D…**: The Corporate Debtor…
- **2018-04-12 — Demand N…**: Operational Creditor served a demand…

## 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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