G.K. Badrinaraya Prasad vs Godrej Tyson Foods Ltd. & Anr

Mr. G.K. Badrinaraya Prasad ...Appellant

Vs.

Godrej Tyson Foods Ltd. & Anr. ...Respondents

Present: For Appellant: - Mr. M.A. Chinnasamy, Mr. MC Rubavalhi and Mr. V. Senthil Kumar, Advocates.

ORDER

20.09.2018─ This appeal has been preferred by the Appellant,

Director of 'M/s. Bangs Resto Ventures Private Limited'- ('Corporate

Debtor') a Company registered under the Companies Act, 1956, against

the order dated 25th July, 2018 passed by the Adjudicating Authority

(National Company Law Tribunal), Single Bench, Chennai, whereby and

whereunder, application under Section 9 of the Insolvency and

Bankruptcy Code, 2016 ('I&B Code' for short) has been preferred by 'M/s.

Godrej Tyson Foods Limited'- ('Operational Creditor') has been admitted.

2. The 'Operational Creditor' claimed an outstanding debt to the tune

of Rs. 43,17,724/- which is inclusive of interest due for the period from

20th December, 2014 to 31st March, 2018.

3. Learned counsel for the Appellant submits that no notice was

issued by the Adjudicating Authority before admitting the application

under Section 9 of the 'I&B Code'. If notice would have been issued, the -2-

'Corporate Debtor' would have pointed out that there was no due against

the 'Corporate Debtor' and all invoices were raised against the Bank and

not against the proprietary concern.

4. He further submits that the said proprietor who received the money

intimated the 'Operational Creditor' not to send further product to the

said Company and he will pay the dues.

5. From the record, it appears that the 'Operational Creditor' is a

premier Poultry and Snacks manufacturer and engaged inter alia in the

business of selling Fresh Chicken; Frozen Chicken and Ready to Cook

Food. The 'Corporate Debtor' is inter alia engaged in the business of

owing, operating and franchising the "Bangs Brand of Fried Chicken

Restaurants" across India. The 'Operational Creditor' and the 'Corporate

Debtor' have entered into Memorandum of Understanding (MoU) on 15th

July, 2014 (enclosed at Page 56- Annexure-C) for sale of marinated

chicken products by the 'Operational Creditor' to the 'Corporate Debtor'.

6. In terms of the MoU, the 'Corporate Debtor' was to supply Marinate

Powder to the 'Operational Creditor' and in turn, the 'Operational

Creditor' would prepare the finished product and finally supply the

product to the franchisee of the 'Corporate Debtor'.

Company Appeal (AT) (Insolvency) No. 565 of 2018 -3-

7. It is in this background, invoices were raised in favour of one or

other franchisee which were supplied with the finished product at the

instance of the 'Corporate Debtor'.

8. In view of the aforesaid admitted fact and the MoU, we hold that

the Respondents come within the meaning of 'Operational Creditor' qua

'M/s. Bangs Resto Ventures Private Limited' (the 'Corporate Debtor'), who

made a requisition for supply the food to its franchisee.

9. We find no merit in this appeal. It is accordingly dismissed. No cost.

(Justice S.J. Mukhopadhaya) Chairperson

(Justice Bansi Lal Bhat) Member(Judicial) Ar/uk

Company Appeal (AT) (Insolvency) No. 565 of 2018