# In the matter of SDF INDUSTRIES LIMITED

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-00253. The case involves an application filed by M/s. Mudali Associates, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-00253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sdf-industries-limited-a745d672

## Summary

### Background

The case involves an application filed by M/s. Mudali Associates, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. SDF Industries Ltd., the Corporate Debtor. The Operational Creditor is a sole proprietorship providing labor services, while the Corporate Debtor allegedly defaulted on payments for these services. The application was filed due to the Corporate Debtor's failure to pay a sum of Rs. 4,55,91,108.46 along with interest. The Corporate Debtor's registered office is in Kerala, giving the NCLT Kochi jurisdiction.

## Facts

M/s. Mudali Associates, a sole proprietorship (Operational Creditor), filed an application under Section 9 of the IBC to initiate CIRP against M/s. SDF Industries Ltd. (Corporate Debtor). The Operational Creditor supplied laborers to the Corporate Debtor for washing, filling, sealing, labeling, and packing bottles. A labor contract agreement was signed in 2017, which was extended periodically. The Corporate Debtor allegedly defaulted on payments since May 2020, leading to a total outstanding amount of Rs. 4,55,91,108.46 plus interest. The Operational Creditor issued a demand notice, which the Corporate Debtor allegedly refused to accept. The Corporate Debtor argued that the claim was not valid based on clauses in the labor contract and orders from the Provident Fund

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## Issues and analysis

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

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The Adjudicating Authority found that the Corporate Debtor had admitted to an agreement

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

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**Application:** The Adjudicating Authority determined that the Operational Creditor had met the

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## Parties

- **Judges:** Madhu S…; Shri. Vina…
- **Appellants:** M/s. Mudali…
- **Respondents:** M/s. SDF Industrie…

## Timeline

- **2001-01-01 — Establishment of…**: M/s. Mudali Associates is…
- **2014-07-02 — Registration Ce…**: The Labour Department issues the Registration…

## 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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