# In the matter of Tirrihannah Co. Ltd. CP(IB) No. 138-KB-2020

> NCLT judgment dated 2022-09-12. Citation: TCN-2022-NCLT-01092. Prabhat Marketing Co. Ltd. (Operational Creditor) filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 12 Sept 2022
- **Citation:** TCN-2022-NCLT-01092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tirrihannah-co-ltd-cpib-no-138-kb-2020-14675fec

## Summary

### Background

Prabhat Marketing Co. Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Tirrihannah Co. Ltd. (Corporate Debtor). The Operational Creditor claimed a total amount of ₹46,39,622/- along with interest @14% from 90 days from the date of invoice till the date of final payment. The Corporate Debtor contested the claim, alleging pre-existing disputes regarding the quality of agrochemicals supplied by the Operational Creditor, specifically the 'Miteshot' brand pesticide.

## Facts

Prabhat Marketing Co. Ltd. (Operational Creditor) supplied agrochemicals to Tirrihannah Co. Ltd. (Corporate Debtor) for its tea estate. The Operational Creditor claimed ₹46,39,622/- with interest, alleging non-payment for supplies. The Corporate Debtor contended that the Operational Creditor advised the use of 'Miteshot' pesticide, which proved ineffective and damaged the tea crop, causing financial losses. Prior to 2012, the Corporate Debtor used 'Magister' brand. In 2018, the Operational Creditor allegedly recommended 'Miteshot' as a replacement, claiming it was more effective. The Corporate Debtor returned the balance 'Miteshot', and the Operational Creditor issued a credit note. The Corporate Debtor informed the Operational Creditor of the financial loss via a

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## Issues and analysis

### Issue 1: Whether there were pre-existing disputes between the Operational Creditor and the Corporate Debtor …

**Ratio:** The existence of a genuine dispute, as defined under Section 5(6) of the Insolvency and

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**Reasoning:** The court relied on the Supreme Court's decision in Mobilox Innovations Private Limited

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**Interpretation:** The term 'dispute' is interpreted broadly to include any disagreement or

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**Application:** In this case, the court found that the Corporate Debtor's letter dated 29th

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## Parties

- **Judges:** RohitKa…; Balraj…
- **Appellants:** Prabhat Marketing…
- **Respondents:** Tirrihannah Co.…
- **Advocates:** Sonal…; Kushagra…; +4 more

## Timeline

- **2012-01-01 — Business Co…**: Corporate Debtor commenced business…
- **2018-01-01 — Shift to 'Mi…**: Operational Creditor allegedly recommended 'Miteshot' pesticide as a replacement for…

## 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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