# In the matter of Mahindra and Mahindra Limited

> NCLT judgment dated 2023-08-10. Citation: TCN-2023-NCLT-02097. North Agro Industries Private Limited, the Operational Creditor/Applicant, filed an application…

- **Court:** NCLT
- **Order date:** 10 Aug 2023
- **Citation:** TCN-2023-NCLT-02097
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mahindra-and-mahindra-limited-0dbabb0f

## Summary

### Background

North Agro Industries Private Limited, the Operational Creditor/Applicant, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Mahindra and Mahindra Limited, the Corporate Debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The total amount of debt claimed was Rs. 3,77,95,546. The Operational Creditor is in the business of supplying machinery, like combine harvesters and tractors. The Corporate Debtor regularly placed orders and purchased machinery from the Operational Creditor. The Corporate Debtor used to place orders with the Operational Creditor, who would then supply the machinery directly to the dealers of the Corporate Debtors. Upon delivery, the Corporate Debtor was liable to release

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## Facts

North Agro Industries Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Mahindra and Mahindra Limited (Corporate Debtor) to initiate CIRP, claiming a debt of Rs. 3,77,95,546. The Operational Creditor supplied machinery to the Corporate Debtor between January 2015 and March 2016, raising 174 invoices for Rs. 1,47,65,400. The Corporate Debtor delayed payments despite reminders. The invoices stipulated interest at 24% per annum. In 2017, the Operational Creditor filed a claim before the MSME Facilitation Council, which was challenged by the Corporate Debtor and is pending before the Punjab & Haryana High Court. The Operational Creditor issued a demand notice on 10.03.2020, which the

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the I&B Code, 2016 is maintainable given the …

**Ratio:** Section 9(5)(ii)(d) read with Section 8(2)(a) of the Insolvency and Bankruptcy Code,

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**Reasoning:** The NCLT found that there was a pre-existing dispute between the parties, as evidenced by

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**Interpretation:** The existence of a pre-existing dispute, as defined under the I&B Code,

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**Application:** The NCLT applied the ratio to the facts, noting the pending litigation and the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** North Agro…
- **Respondents:** Mahindra and…

## Timeline

- **2015-01-01 — Machinery…**: From January 2015 to March 2016, the Operational Creditor supplied machinery worth Rs.…
- **2017-01-01 — Claim before MSME…**: The Operational Creditor instituted a claim before the MSME Facilitation Council, Punjab…

## 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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