# In the matter of Devika Resources Pvt. Ltd. vs. MAA Manasha Devi Alloys Pvt. Ltd.

> NCLAT judgment dated 2025-05-14. Citation: TCN-2025-NCLAT-00041. The appeal was filed against an order dated 06.03.2024, where the Tribunal dismissed an…

- **Court:** NCLAT
- **Order date:** 14 May 2025
- **Citation:** TCN-2025-NCLAT-00041
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/devika-resources-pvt-ltd-vs-maa-manasha-devi-alloys-pvt-ltd-09e2032b

## Summary

### Background

The appeal was filed against an order dated 06.03.2024, where the Tribunal dismissed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to a lack of threshold. The appellant claimed the respondent failed to pay for purchased Iron Ore, leading to a demand notice on 04.04.2022 for Rs. 1,16,25,583/-. The respondent replied, and the appellant filed an application under Section 9 on 20.05.2022. The application was initially admitted on 31.10.2022, commencing CIRP proceedings, but the respondent challenged this order, which was allowed on 19.10.2023, due to the respondent not being heard. The application was remanded to the Tribunal. During the proceedings, the respondent deposited Rs. 20 Lakhs towards the dues, which the appellant was willing to

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## Facts

Devika Resources Pvt. Ltd. (formerly Kalinga Enterprises Pvt. Ltd.) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against MAA Manasha Devi Alloys Pvt. Ltd. The appellant claimed that the respondent failed to pay for Iron Ore purchased. A demand notice was served on 04.04.2022 for Rs. 1,16,25,583/-, including principal and interest. The respondent replied to the notice. The application under Section 9 was filed on 20.05.2022. The application was initially admitted on 31.10.2022, commencing CIRP proceedings. The respondent challenged the admission order, which was allowed on 19.10.2023, and the matter was remanded. During the proceedings, the respondent deposited Rs. 20 Lakhs towards the dues. The Tribunal rejected the application

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## Issues and analysis

### Issue 1: Whether the threshold for initiating CIRP under Section 9 of the Insolvency and Bankruptcy Code …

**Ratio:** The threshold for initiating CIRP under Section 9 must be fulfilled as on the date of

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**Reasoning:** The court relied on the Supreme Court's decisions, which held that the validity of a

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**Interpretation:** Section 4 of the Code specifies the threshold for initiating CIRP. The Supreme

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**Application:** In this case, the appellant had crossed the threshold of Rs. 1 Cr. at the time

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Devika Resources…
- **Respondents:** MAA Manasha Devi…

## Timeline

- **2022-04-04 — Demand N…**: Appellant served a demand notice to the…
- **2022-05-20 — Section 9 Application…**: Appellant filed an application…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(11) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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