NCLT Admits S. 9 Application, Initiates CIRP Against Tirumalla Agro Industries for ₹1.11 Crore Default [Read Order]
It noted that the CD had failed to file a substantive reply despite multiple opportunities and that its own correspondence had admitted the liability
NCLT
NCLT
The National Company Law Tribunal (NCLT), Mumbai Bench, has admitted a Section 9 application filed by an Operational Creditor, thereby initiating the Corporate Insolvency Resolution Process (CIRP) against Tirumalla Agro Industries Private Limited for a default of over ₹1.11 Crore.
Aryatech Platforms Private Limited, the Operational Creditor (OC), filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('IBC'), seeking initiation of the CIRP against the Corporate Debtor (CD), Tirumalla Agro Industries Private Limited. The factual background revealed that the OC provided a marketplace platform and procurement facilities to the CD under a Short-Term Procurement Facility Agreement. The CD defaulted on payments for goods supplied, leading to an outstanding debt.
Counsel for the OC argued that a debt of ₹1,11,69,393/- was due and payable, supported by the facility agreement, invoices, delivery notes, and correspondence. It was submitted that the CD had admitted its liability in earlier replies to legal notices but failed to make the payment despite being granted time. A valid demand notice under Section 8 of the IBC was also served, which went unreplied.
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Per contra, the CD raised primarily technical objections. It argued that the application was defective, claiming the OC had not filed actual invoices and that some delivery notes predated the agreement. The CD also objected to a minor delay in the filing of an additional affidavit by the OC.
The NCLT bench, comprising Shri Nilesh Sharma (Member Judicial) and Shri Sameer Kakar (Member Technical), after considering the rival submissions, admitted the application. The Tribunal found that the OC had established the existence of an operational debt exceeding the threshold limit and that a default had occurred.
It noted that the CD had failed to file a substantive reply despite multiple opportunities and that its own correspondence had admitted the liability. The Tribunal held that the belated technical objections could not be considered a "dispute" within the meaning of the IBC, especially when the existence of the debt was acknowledged by the CD.
The NCLT concluded that all conditions precedent for admitting a Section 9 application were met. Accordingly, it admitted the Corporate Debtor into the CIRP, declared a moratorium under Section 14 of the IBC, and appointed an Interim Resolution Professional to manage the process.
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