- Asgard is a country with a population of 40 million, and one-fourth of the population is

involved in the production, processing, packing, and selling of dry fruits, nuts, and spices.

- Organic Dried Fruits and Spices Private Limited (ODFSL) in Asgard is a significant
player in the industry, with a large distribution chain and 40% of its produce exported to
other countries.

- Natural Foods Limited (NFL), based in Xandar, heavily depends on imports of dried
fruits, nuts, and spices, including from Asgard. It has a substantial market share and
raised funds through convertible corporate bonds in 2019.

- In September 2022, NFL entered into a sale-purchase agreement with ODFSL for 10
loads of dried fruits and nuts and 12 loads of spices, totaling INR 10,15,50,000. The
agreement included an advance payment, shipment details, and a penalty clause for non-
acceptance within 30 days.

- Due to increased demand, NFL placed another order on 15.09.2022 for 20 loads of dried
fruits and nuts and 10 loads of spices, totaling INR 20,17,30,000. ODFSL delayed the
shipment by four days.

- NFL faced financial issues and raised money through convertible corporate bonds in
October 2022. Plaza Foods became a significant creditor.

- Dispute resolution clauses in agreements stipulate mediation and arbitration under

Merchants and Traders of Asgard Association rules.

- Due to various issues, NFL couldn’t receive the goods within the agreed timeframe,
leading to potential penalties and costs for NFL.
- NFL acquired Connaught Foods, facing complaints of anti-competitive practices from
Plaza Foods, triggering an inquiry by the Competition Commission.

- ODFSL initiated arbitration, and despite an arbitral award in its favor, NFL failed to
comply, leading to enforcement proceedings.

- NFL entered Corporate Insolvency Resolution Process (CIRP) under IBC, facing
investigations from the Securities Board and penalties from the Competition
Commission.

- The Adjudicating Authority rejected a resolution plan, leading to appeals in NCLAT and
subsequently the Supreme Court.

- Operational Creditors filed an intervention application, alleging fraud in initiating CIRP

and seeking impleadment in Supreme Court proceedings. The Supreme Court framed
specific issues for consideration.