NCLT Bengaluru Admits Nadella Agrotech Into CIRP Over Unpaid Palm Olein Dues To Voyager Trading Partners

The National Company Law Tribunal (NCLT), Bengaluru, on 26 October admitted Nadella Agrotech Private Limited into the Corporate Insolvency Resolution Process (CIRP) over unpaid dues for palm olein supplied by US-based Voyager Trading Partners LLC.

A Bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada admitted the Section 9 petition after considering documentary evidence of the supply transactions, the corresponding payment obligations and the assignment and subsequent reassignment of receivables.

The petition arose from two unpaid invoices for palm olein supplied by Voyager Trading Partners LLC to Nadella Agrotech under a Master Sales Agreement. Nadella Agrotech challenged reliance on the agreement, arguing that it was unstamped, did not specify the place of execution and did not sufficiently establish the authority of the signatories. Nadella Agrotech had executed a Master Sales Agreement dated 12 February 2024 and an undertaking in connection with its transactions with Voyager Trading Partners.

A Board Resolution dated the same day referred to the procurement of products through Voyager Trading Partners and authorised designated representatives to execute the relevant transaction documents, invoices, bills of exchange, acknowledgements and other documents contemplated by the arrangement.

The Tribunal considered the bills of exchange, bills of lading, packing lists and records of advance payments and found that these documents supported the existence of the supply transactions and the corresponding payment obligations of Nadella Agrotech.

On the objection concerning stamping and admissibility, it observed that the issue had to be considered under the applicable stamp law wherever the agreement was sought to be acted upon. However, the objection did not displace the other documentary evidence of the supply of goods and the acknowledgement of liability.

Further, the Bench relied on Mudraksh Investfin Private Limited v. Brijesh Singh Bhadauriya, Company Appeal (AT) (Insolvency) No. 1671 of 2023, which held that the assignment of receivables arising from the supply of goods does not, by itself, alter the character of the underlying operational debt.

Applying this principle, it observed that the assignment of receivables to Drip Capital Inc. did not convert Nadella Agrotech's liability arising from the purchase of goods into a financial debt.

It further noted that the subsequent reassignment supported Voyager Trading Partners' claim. It also noted that the demand notice had been duly delivered, as reflected in the National E-Governance Services Limited (NeSL) record.

Accordingly, the NCLT admitted the Section 9 petition and initiated CIRP against Nadella Agrotech Private Limited.