# In the matter of Matoshri Laxmi Sugar Co-Generation Industries Limited

> NCLT judgment dated 2024-04-02. Citation: TCN-2024-NCLT-01887. Sucden India Private Limited, the Operational Creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 2 Apr 2024
- **Citation:** TCN-2024-NCLT-01887
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/matoshri-laxmi-sugar-co-generation-industries-limited-ea2ae8f2

## Summary

### Background

Sucden India Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Matoshri Laxmi Sugar Co-Generation Industries Limited, the Corporate Debtor. The application was based on a Purchase Agreement where the Operational Creditor agreed to purchase sugar from the Corporate Debtor. The Corporate Debtor allegedly failed to supply the sugar on time, leading to a claim for penalty and interest by the Operational Creditor.

## Facts

Sucden India Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Matoshri Laxmi Sugar Co-Generation Industries Limited (Corporate Debtor). The Operational Creditor and Corporate Debtor entered into a Purchase Agreement dated 10.10.2018, where the Operational Creditor agreed to purchase a minimum of 5,600 MTs and a maximum of 15,000 MTs of sugar from the Corporate Debtor during the 2018-2019 season. The Operational Creditor made an advance payment of Rs.17,00,00,000/-. The Corporate Debtor supplied only 5,200 MTs of sugar in December 2018. The Operational Creditor raised a debit note for Rs.91,56,420/- dated 30.06.2019 towards penalty

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## Issues and analysis

### Issue 1: Whether the amount claimed in the Application is an 'operational debt' within the meaning of …

**Ratio:** An 'operational debt' under Section 5(21) of the Code must represent a claim in respect

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**Reasoning:** The Tribunal observed that the amount claimed by the Operational Creditor was primarily

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**Interpretation:** The interpretation of 'operational debt' under Section 5(21) of the Code does

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**Application:** In this case, the claim made by the Operational Creditor was based on penalty

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Sucden India…
- **Respondents:** Matoshri Laxmi…

## Timeline

- **2018-10-10 — Purchase Ag…**: Operational Creditor and Corporate Debtor executed a Purchase Agreement bearing No.…
- **2018-10-01 — Advance P…**: Operational Creditor made an…

## 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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