# In the matter of MEGA PROCESS TECHNOLOGY PRIVATE LIMITED

> NCLT judgment dated 2024-11-18. Citation: TCN-2024-NCLT-00212. Balaji Formalin Private Limited, the Operational Creditor/Petitioner, filed an application…

- **Court:** NCLT
- **Order date:** 18 Nov 2024
- **Citation:** TCN-2024-NCLT-00212
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mega-process-technology-private-limited-74000308

## Summary

### Background

Balaji Formalin Private Limited, the Operational Creditor/Petitioner, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Mega Process Technology Private Limited, the Respondent/Corporate Debtor, for non-payment of an operational debt of Rs. 1,26,96,800/-. The Operational Creditor had provided services to the Corporate Debtor for project identification and local assistance for a diary project. The Corporate Debtor acknowledged the debt through balance confirmations and email correspondence requesting an extension of the payment deadline, citing internal management problems and financial constraints.

## Facts

Balaji Formalin Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Mega Process Technology Private Limited (Corporate Debtor) for non-payment of an operational debt amounting to Rs. 1,26,96,800/-. The debt arose from services provided by the Operational Creditor for project identification and local assistance for a diary project of Panchmahal District Co-operative Milk Producers Union Limited (PDCMPUL) under an association agreement dated 2015-10-03, where the Operational Creditor was to receive a 5% commission. Invoices were raised on 2018-01-23. The Corporate Debtor acknowledged the debt through balance confirmations for the years 2017-18, 2020-21, and 2021-22, and requested an extension for

…

## Issues and analysis

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

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

…

**Reasoning:** The court found that the Operational Creditor had provided services to the Corporate

…

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

…

**Application:** The court applied Section 9 to the facts of the case and found that the

…

## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Balaji Formalin…
- **Respondents:** Mega Process…

## Timeline

- **2015-10-03 — Association A…**: Association agreement between the Operational Creditor and the Corporate Debtor for…
- **2018-01-23 — Invoice…**: Invoices raised by the Operational…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mega-process-technology-private-limited-74000308