# In the matter of Tungbhadra Sugar Works Ltd.

> NCLT judgment dated 2024-10-07. Citation: TCN-2024-NCLT-00480. Anuradha Muthappa Rai, the Operational Creditor/Applicant, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 7 Oct 2024
- **Citation:** TCN-2024-NCLT-00480
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tungbhadra-sugar-works-ltd-e0ee6cbe

## Summary

### Background

Anuradha Muthappa Rai, the Operational Creditor/Applicant, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Tungbhadra Sugar Works Ltd., the Corporate Debtor/Respondent. The applicant is the legal heir and wife of Late Mr. Nettala Rai Muthappa, who had entered into an agreement for services with the Corporate debtor under which the debt in question is stated to have accrued to the service provider deceased on 15.5.2020. The Operational Creditor claimed a total outstanding amount of Rs. 9,00,00,000/- (Rupees Nine Crores Only) together with interest thereon at the rate of 12% per annum as of 30th September 2023, based on a Consultancy Agreement dated 25th

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## Facts

Anuradha Muthappa Rai, claiming to be the Operational Creditor and the wife of the deceased Mr. Nettala Rai Muthappa, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Tungbhadra Sugar Works Ltd., the Corporate Debtor. The claim was based on a Consultancy Agreement dated 25th November 2014, where the Corporate Debtor agreed to avail specialized services from Mr. Muthappa Rai and others for a total compensation of Rs. 10 Crores each. The Operational Creditor claimed that the Corporate Debtor failed to pay the outstanding amount of Rs. 9 Crores, along with interest. The Respondent contested the application, arguing that the petition was time-barred because Mr. Muthappa Rai died on 15.05.2020, that the Applicant was not an Operational

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute regarding the Applicant's claim to be the sole successor to …

**Ratio:** The Hon'ble Supreme Court in Mobilox Innovations Pvt. Ltd. Vs. Kirusa Software Pvt. Ltd.

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**Reasoning:** The NCLT found that the Applicant had failed to bring on record that she is the sole

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**Interpretation:** Section 5(6) of the IBC defines "dispute" to include a suit or

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**Application:** The NCLT applied the ratio of Mobilox Innovations and the definition of

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## Parties

- **Judges:** V. G. Bisht…; SH. PRABHAT…
- **Appellants:** Anuradha Muthappa…
- **Respondents:** Tungbhadra Sugar…

## Timeline

- **2014-11-25 — Consultancy A…**: Consultancy Agreement entered between Corporate Debtor and Mr. Nettala Rai Muthappa and…
- **2019-12-25 — Will Exec…**: Muthappa Rai executed a will…

## 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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