# In the matter of Popular Spirits LLP

> NCLT judgment dated 2024-07-31. Citation: TCN-2024-NCLT-00912. The Operational Creditor (OC), a wholesaler of alcohol spirits, filed a petition under Section…

- **Court:** NCLT
- **Order date:** 31 Jul 2024
- **Citation:** TCN-2024-NCLT-00912
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/popular-spirits-llp-87ecaf55

## Summary

### Background

The Operational Creditor (OC), a wholesaler of alcohol spirits, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) against the Corporate Debtor (CD), a retailer, for non-payment of outstanding dues. The OC had supplied alcohol beverages to the CD, raising regular invoices. The CD admitted to a portion of the debt, but disputed the total amount claimed by the OC. The OC issued a statutory demand notice under Section 8 of IBC, which the CD did not reply to, leading to the filing of the Section 9 petition.

## Facts

M/s. Indo Spirits (Operational Creditor) filed a petition against Popular Spirits LLP (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Operational Creditor (OC) is a wholesaler of alcohol spirits, while the Corporate Debtor (CD) is a retailer. The OC supplied alcohol beverages to the CD and raised regular invoices. The CD admitted to an outstanding amount of Rs. 3,85,38,406/- as per ledger balance reconciliation for the period 01.06.2022 to 30.06.2022. The OC issued a statutory demand notice dated 23.12.2023 under Section 8 of IBC demanding outstanding debt of Rs. 7,39,70,851/- as on 20.12.2022. The CD did not reply to the demand notice. The CD partially admitted the debt of Rs. 3.65 Crores but disputed the total amount. The CD

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, should be …

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

…

**Reasoning:** The court considered the admitted debt, the discrepancies in the amounts claimed, and the

…

**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to recover

…

**Application:** The court applied the provisions of Section 9 of the IBC to the facts of the

…

## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** M/s. Indo S…
- **Respondents:** Popular Spirits…

## Timeline

- **2022-06-01 — Ledger Balance…**: Start date for the ledger…
- **2022-06-30 — Ledger Balance…**: End date for the ledger…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

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/popular-spirits-llp-87ecaf55