# In the matter of West Coast Frozen Foods Private Limited CP (IB) 198-NCLT-AHM-2021

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04627. This case involves an application filed by Ms. Bhumisha Shah, the sole proprietor of Candida…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04627
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/west-coast-frozen-foods-private-limited-cp-ib-198-nclt-ahm-2021-a2f7eff6

## Summary

### Background

This case involves an application filed by Ms. Bhumisha Shah, the sole proprietor of Candida Bio Aqua Solutions (Operational Creditor), under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against West Coast Frozen Foods Private Limited (Corporate Debtor). The applicant claimed that the corporate debtor defaulted on payments for shrimps and seafood supplied under twelve invoices. The corporate debtor disputed the claim, alleging that the amount of default did not cross the threshold of Rs. 1.00 crore, that the applicant suppressed material facts, and that disputes were raised prior to the issuance of the demand notice. The corporate debtor also claimed a barter agreement existed, and that a civil

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## Facts

Ms. Bhumisha Shah, operating as Candida Bio Aqua Solutions, filed an application under Section 9 of the IBC to initiate CIRP against West Coast Frozen Foods Private Limited. The application was based on unpaid invoices for shrimp and seafood supplied between 20.10.2018 and 11.12.2018, totaling Rs. 1,15,88,665/-, with Rs. 40,00,000/- paid on 20.12.2018, leaving Rs. 75,88,665/- outstanding. A legal notice dated 10.02.2020, and a demand notice dated 07.07.2021 under Section 8 of the IBC, were served. The Corporate Debtor claimed that the amount of default does not cross the threshold of Rs. 1.00 crore, that the applicant suppressed material facts, and that disputes were raised prior to the issuance of the demand notice. The corporate debtor also claimed a barter agreement

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The application under Section 9 of the IBC is maintainable if the operational debt

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**Reasoning:** The NCLT considered the submissions and documents presented by both parties to determine

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

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**Application:** The NCLT found that the debt was below the threshold and there was a

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## Parties

- **Judges:** DEEPTI M…; Ajai Das Me…
- **Appellants:** Bhumisha…
- **Respondents:** West Coast Frozen…

## Timeline

- **2018-10-20 — Supply of…**: Applicant supplied shrimps and sea food material to the corporate debtor under twelve…
- **2018-12-11 — Supply of…**: Applicant supplied shrimps and sea food material to the corporate debtor under twelve…

## 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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