# In the matter of Radhashyam Industries Private Limited C.P. (IB) No. 505-KB-2019

> NCLT judgment dated 2022-05-20. Citation: TCN-2022-NCLT-02679. Khaitan Rice Mill Private Limited filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 20 May 2022
- **Citation:** TCN-2022-NCLT-02679
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/radhashyam-industries-private-limited-cp-ib-no-505-kb-2019-be102d0d

## Summary

### Background

Khaitan Rice Mill Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Radhashyam Industries Private Limited, alleging a default of Rs. 25,77,322/-. The Operational Creditor claimed that the Corporate Debtor failed to pay for rice brans supplied in November and December 2018. The Corporate Debtor acknowledged a smaller outstanding amount of Rs. 6,09,299/- and claimed disputes over the invoice rates and quality of goods.

## Facts

Khaitan Rice Mill 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 Radhashyam Industries Private Limited (Corporate Debtor). The Operational Creditor claimed a default of Rs. 25,77,322/-, inclusive of interest, for the supply of rice brans. The Corporate Debtor argued that the agreed price for the materials was Rs. 9000/- per metric ton or Rs. 7000/- per metric ton, not Rs. 17000/- per metric ton as claimed by the Operational Creditor. The Corporate Debtor admitted to an outstanding amount of Rs. 6,09,299/- after reconciliation. The Operational Creditor sent a statutory notice dated 04 March, 2019, under Section 8 of the Code, which

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## Issues and analysis

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

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

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**Reasoning:** The court noted that the application was filed within the threshold limit applicable

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**Interpretation:** The court interpreted Section 9 of the IBC to mean that an operational creditor

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**Application:** The court applied the provisions of Section 9 to the facts of the case, finding

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Khaitan Rice Mill…
- **Respondents:** Radhashyam…

## Timeline

- **2018-11-01 — Supply of Ric…**: Operational Creditor supplied Rice Brans to the Corporate Debtor in November and December…
- **2019-03-04 — Statutory…**: Operational Creditor sent a statutory notice under Section 8 of the Code to the Corporate…

## 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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