# In the matter of Varadharaja Foods Private Limited CP-IB-9-CHE-2022

> NCLT judgment dated 2022-11-09. Citation: TCN-2022-NCLT-00503. Shree Keshav Agro Private Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Nov 2022
- **Citation:** TCN-2022-NCLT-00503
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/varadharaja-foods-private-limited-cp-ib-9-che-2022-0fdd8720

## Summary

### Background

Shree Keshav Agro Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Varadharaja Foods Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). Shree Keshav Agro Private Limited claimed to be an operational creditor of Varadharaja Foods Private Limited. The application was filed due to an alleged default in payment of operational debt.

## Facts

Shree Keshav Agro Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Varadharaja Foods Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed a total debt of Rs. 2,30,20,095/- along with interest. The date of default was stated as 30.07.2021. The Operational Creditor supplied mango, processing of mango, mango pulp and packaging materials to the Corporate Debtor. The Corporate Debtor entered into a 'First Amendment to Corporate Guarantee for Advance' on 14.12.2020. A demand notice was issued on 29.09.2021. The Corporate Debtor argued that the COVID-19 lockdown caused significant business losses, constituting a

…

## Issues and analysis

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

**Ratio:** Section 9(5) of the IBC, 2016, states that the Adjudicating Authority shall admit the

…

**Reasoning:** The Tribunal found that the application was complete and met the requirements of Section

…

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

…

**Application:** The Tribunal applied Section 9(5) of the IBC and admitted the application as it

…

## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** Shree Keshav Agro…
- **Respondents:** Varadharaja Foods…

## Timeline

- **2020-07-28 — Demand N…**: Demand Notice dated 28.07.2020 given by the…
- **2020-09-05 — Email Commun…**: Corporate Debtor acknowledged the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

---

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/varadharaja-foods-private-limited-cp-ib-9-che-2022-0fdd8720