# In the matter of Tasa Foods Private Limited C.P. (IB) No. 205-BB-2020

> NCLT judgment dated 2022-02-01. Citation: TCN-2022-NCLT-04301. M/s. Sicagen India Limited filed a petition under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 1 Feb 2022
- **Citation:** TCN-2022-NCLT-04301
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tasa-foods-private-limited-cp-ib-no-205-bb-2020-6ef18ad3

## Summary

### Background

M/s. Sicagen India Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Tasa Foods Private Limited, alleging unpaid operational debt. The Operational Creditor claimed that the Corporate Debtor failed to pay the invoice amount for materials supplied, despite repeated requests and a one-time settlement proposal. The Corporate Debtor contested the petition, arguing that all dues to Beta Industries (a division of the Applicant) had been cleared through payments made between 2011 and 2014. The Corporate Debtor also claimed that the Applicant had inappropriately merged transactions between Tasa Foods and RMM Food Products, a separate entity.

## Facts

M/s. Sicagen India Limited (Operational Creditor) filed a petition against M/s. Tasa Foods Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming an unpaid operational debt of Rs.46,83,408/- plus interest. The debt arose from the supply of MS drums by the Operational Creditor to the Corporate Debtor. The Operational Creditor raised 82 invoices for a total value of Rs.1,20,76,611/-, out of which the Corporate Debtor paid Rs.73,93,203/- between August 2012 and June 2017. The Operational Creditor sent a demand notice on 04.11.2019 after the Corporate Debtor failed to make the balance payment. The Corporate Debtor argued that it had cleared all dues to Beta Industries (a division of the Operational Creditor) through

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in paying the …

**Ratio:** The Adjudicating Authority, in a summary procedure like the CIRP under the IBC, 2016,

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**Reasoning:** The court found that the Respondent was able to prove with the support of the Bank

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**Interpretation:** The IBC provides a mechanism for resolution of insolvency, but it is not

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**Application:** Since the Corporate Debtor demonstrated that the payments were made, the

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Appellants:** M/s. Sicagen…
- **Respondents:** M/s. Tasa Foods…
- **Advocates:** S. R…; Gaurav Ma…

## Timeline

- **2017-12-14 — Acceptance…**: The Petitioner gave acceptance letter on 14.12.2017 to the Respondent willing to accept…
- **2019-11-04 — Demand Notice…**: Upon its failure, the Petitioner…

## 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)

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