# In the matter of Maxgrow Overseas Limited C.P. (IB) No. 1082-KB-2020

> NCLT judgment dated 2022-05-19. Citation: TCN-2022-NCLT-02696. UIL Commodities DMCC filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 May 2022
- **Citation:** TCN-2022-NCLT-02696
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/maxgrow-overseas-limited-cp-ib-no-1082-kb-2020-93cf1b26

## Summary

### Background

UIL Commodities DMCC filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Maxgrow Overseas Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). UIL Commodities DMCC claimed that Maxgrow Overseas Limited defaulted on payments for goods supplied under a sales contract. The operational creditor, UIL Commodities DMCC, is a company incorporated in Dubai, UAE, engaged in trading metals. Maxgrow Overseas Limited approached UIL Commodities DMCC for the supply of copper cathodes, and a sales contract was entered on December 4, 2018. The operational creditor supplied the goods, but the corporate debtor failed to honor its obligations and defaulted on payments amounting to USD 18,67,080.88 along with interest. The

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## Facts

UIL Commodities DMCC, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Maxgrow Overseas Limited, a corporate debtor. The operational creditor claimed that the corporate debtor defaulted on payments amounting to USD 18,67,080.88 along with interest for goods supplied under a sales contract dated December 4, 2018. The operational creditor is a company incorporated in Dubai, UAE, engaged in trading metals. The corporate debtor approached the operational creditor for the supply of copper cathodes. The operational creditor supplied the goods, but the corporate debtor failed to honor its obligations and defaulted on payments. The operational creditor issued a statutory demand notice on September 7, 2020, which

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court reasoned that the Corporate Debtor admitted to receiving the goods under the

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts, noting that the Corporate Debtor

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** UIL Commodities…
- **Respondents:** Maxgrow Overseas…

## Timeline

- **2018-12-04 — Sales Con…**: UIL Commodities DMCC and Maxgrow Overseas…
- **2019-06-16 — Death of Pr…**: Mr. Rahul Saraf, the Promoter of Maxgrow Overseas Limited, met with an accident and…

## 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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