# In the matter of Metals and Metal Electric Pvt. Ltd. vs. Prince Foundations Ltd.

> NCLAT judgment dated 2025-10-24. Citation: TCN-2025-NCLAT-00550. The Appellant, an operational creditor, initiated proceedings under Section 9 of the I&B Code…

- **Court:** NCLAT
- **Order date:** 24 Oct 2025
- **Citation:** TCN-2025-NCLAT-00550
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/metals-and-metal-electric-pvt-ltd-vs-prince-foundations-ltd-3b2ed0f6

## Summary

### Background

The Appellant, an operational creditor, initiated proceedings under Section 9 of the I&B Code against the Respondent. The application was filed in Form-5, with the date of default shown as 22.02.2022. The Adjudicating Authority dismissed the application via an order dated 21.02.2023, citing that the date of default mentioned in the application was later than the date of the demand notice and that the demand notice did not mention any date of default.

## Facts

The Appellant initiated proceedings under Section 9 of the I&B Code against the Respondent.

The Adjudicating Authority dismissed the application due to discrepancies in the date of default.

The Appellant argued that the demand notice was invoice-based (Form-4) and did not require a specific default date.

The Respondent contended that the date of default was later than the date of the demand notice.

The Appellate Tribunal quashed the impugned order and remitted the matter back to NCLT, Chennai.

## Issues and analysis

### Issue 1: Whether the absence of a specific date of default in an invoice-based demand notice (Form-4) is a …

**Ratio:** The choice of issuance of demand notice under section 8(1) of the Insolvency and

…

**Reasoning:** Form-4, being invoice-based, does not mandate a specific reference to the date of

…

**Interpretation:** The interpretation of Rule 5 of the Insolvency and Bankruptcy (Application to

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**Application:** In this case, the Appellant's demand notice was invoice-based (Form-4), and

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** M/S. Metals and…
- **Respondents:** M/S. Prince…
- **Advocates:** Gopika Na…; Bharat B.…; +1 more

## Timeline

- **2022-02-22 — Date of D…**: Date of default as…
- **2022-02-18 — Date of Deman…**: Date on which the demand notice…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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