IN THE NATIONAL COMPANY LAW TRIBUNAL

KOCHI BENCH

KOCHI

CP (IBC)/37/KOB/2022

(Under Section 9 of Insolvency and Bankruptcy Code, 2016 read with Rule

6 Of Insolvency and Bankruptcy (Application to Adjudicating Authority)

Rules, 2016)

In the matter of:

The Bangalore Sales Corporation, No.134/1, 3^rd Floor, 9^th Cross, 4^th Main,

Chamrajpet, Bengaluru- 560 018. Email: anirudhsuresh@aristolegal.com;

… Operational Creditor

-Versus-

Sark Spice Products Pvt Ltd., TAK Industrial Complex, Eara North P.O.,

Neelamperoor, Alleppey, Kerala- 686 534. Email: chairman@sarkspiceindia.com.

… Corporate Debtor

Coram:

Shri. P. Mohan Raj

:

Member (Judicial)

Shri. Satya Ranjan Prasad

:

Member (Technical)

Parties/Counsel present (through video conference):

For Operational Creditor

:

Mr. Anirudh Suresh

Mr. Nirmal V. Nair, Advocate

For Corporate Debtor

:

M/s. Indialaw LLP, Advocate

Order reserved on: 24.11.2022

Order pronounced on: 23.12.2022

O R D E R

1. Under consideration is Petition No. CP(IB)/37/KOB/2020 filed invoking

Section 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of

Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules,

2016. The relief sought is to initiate Corporate Insolvency Resolution

Process (hereinafter referred as CIR Process) against M/s. Sark Spice

Products Pvt. Ltd. for the default amount of Rs. 1,72,15,532/- (Rupees

IN THE NATIONAL COMPANY LAW TRIBUNAL

KOCHI BENCH

C.P (IBC)/37/KOB/2022

In re: The Bangalore Sales Corporation V. Sark Spice Products Pvt Ltd

Page 2 of 15

One Crore Seventy-Two Lakh Fifteen Thousand Five Hundred Thirty-

Two Only) in respect of credit facility availed from the Operational

Creditor.

2. The facts as narrated in the application and explained by the Operational

Creditor are summarized hereunder:

i. The Corporate Debtor issued a Purchase Order dated 19.08.2019

pursuant to which the Operational Creditor provided the said goods

vide Invoice dated 21.08.2019. The said invoice along with the e-

way bill was dispatched to the Corporate Debtor through email as

well as along with the said goods, which has been accepted by the

Corporate Debtor without any dispute or demur. As the bill amounts

were not paid, several requests were made by the Operational

Creditor to the Corporate Debtor to make the payment, to which the

Corporate Debtor gave false assurances but never made the

payment. In view of the above, the Operational Creditor levied an

interest @ 24% per annum after giving a credit period of 90 days as

agreed between the parties and as stated in the invoice.

ii. Since Corporate Debtor adopted delaying tactics the Operational

Creditor through its authorised representative issued a statutory

demand notice directing the Corporate Debtor to clear the

outstanding dues of Rs.1,72,15,532/- (Rupees One Crore Seventy-

Two Lakh Fifteen Thousand Five Hundred Thirty-Two Rupees

Only) that is in default within 10 days of the receipt of the demand

notice. This was sent through registered post, by email to the

registered email address of the Company as well as the email address

of its directors as available on the Ministry of Corporate Affairs

website. But the Respondent/Corporate Debtor failed to make the

payment.

IN THE NATIONAL COMPANY LAW TRIBUNAL

KOCHI BENCH

C.P (IBC)/37/KOB/2022

In re: The Bangalore Sales Corporation V. Sark Spice Products Pvt Ltd

Page 3 of 15

3. On 07.09.2022 the Respondent filed his reply statement and stated that the

Corporate Debtor is not liable to pay the amount as claimed by the

Operational Creditor. The Corporate Debtor, Sark Spice Products Pvt. Ltd,

is a company engaged in the business of manufacturing and expor