# In the matter of Trident Sugars Ltd.

> NCLT judgment dated 2023-08-31. Citation: TCN-2023-NCLT-01835. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 31 Aug 2023
- **Citation:** TCN-2023-NCLT-01835
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/trident-sugars-ltd-743c5226

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by M/s Tata International Ltd (Operational Creditor) against M/s Trident Sugars Ltd (Corporate Debtor) for a sum of Rs. 21,67,10,677/-. The operational creditor sought initiation of Corporate Insolvency Resolution Process (CIRP), a moratorium, and appointment of an Interim Resolution Professional. The corporate debtor denied the averments, claiming the application was not maintainable due to a defective demand notice, existence of a dispute, and the debt being non-operational. A Trade Agreement was entered into on 30.09.2019, where the operational creditor agreed to pay an advance of Rs.15,00,00,000/- to the corporate debtor for sugar supply by 31.03.2020. The

…

## Facts

M/s Tata International Ltd (Operational Creditor) filed a petition against M/s Trident Sugars Ltd (Corporate Debtor) under Section 9 of the IBC, claiming Rs. 21,67,10,677/-. A Trade Agreement dated 30.09.2019 required the Operational Creditor to advance Rs. 15,00,00,000/- for sugar supply by 31.03.2020. The Corporate Debtor allegedly breached the agreement. An addendum extended the agreement to 30.11.2020 with 30% interest. Credit notes were issued. A demand notice was sent on 15.11.2021. The Corporate Debtor argued the application was not maintainable due to a defective demand notice, a pre-existing dispute, and the debt being non-operational. They also stated that a subsequent MOU dated 18.02.2022 rescheduled payments, altering the default date. The Operational

…

## Issues and analysis

### Issue 1: Whether the demand notice dated 15.11.2021 claimed to have been served by Petitioner on the …

**Ratio:** The date of default is crucial for determining the validity of the demand notice. If the

…

**Reasoning:** The court found that the date of default relied upon by the operational creditor was

…

**Interpretation:** Section 8 of the IB Code requires a demand notice to be served for an existing

…

**Application:** The court applied the principle that the date of default relied upon in the

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** M/s Tata Internati…
- **Respondents:** M/s Trident…

## Timeline

- **2019-09-30 — Trade Agr…**: Parties entered into a Trade Agreement for sugar supply, with an advance payment of Rs.…
- **2020-03-31 — Original Contract…**: Original deadline for the Corporate Debtor to…

## 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)

---

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/trident-sugars-ltd-743c5226