# In the matter of E Complex Pvt. Ltd. CP (IB) No. 563-9-NCLT-AHM-2018

> NCLT judgment dated 2020-12-09. Citation: TCN-2020-NCLT-00122. The application was filed by AP Securitas Pvt. Ltd, the Operational Creditor, to initiate…

- **Court:** NCLT
- **Order date:** 9 Dec 2020
- **Citation:** TCN-2020-NCLT-00122
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/e-complex-pvt-ltd-cp-ib-no-563-9-nclt-ahm-2018-c93fd6c9

## Summary

### Background

The application was filed by AP Securitas Pvt. Ltd, the Operational Creditor, to initiate Corporate Insolvency Resolution Process (CIRP) against E-Complex Pvt. Ltd, the Corporate Debtor. The Operational Creditor claimed an outstanding debt of Rs. 1,09,89,227, which was due on different dates based on pending invoices. The Corporate Debtor had placed a work order on 15.12.2016 for providing security personnel. Security personnel were provided, and invoices were raised. The supply of labor was made from 01.04.2016 till 21.09.2017 through various work orders, with the contract valid until 31.03.2018. Issues arose regarding the quality and number of personnel provided.

## Facts

AP Securitas Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against E-Complex Pvt. Ltd. (Corporate Debtor) due to an outstanding debt of Rs. 1,09,89,227. The debt arose from a work order placed by the Corporate Debtor on 15.12.2016 for security personnel. The Operational Creditor provided security personnel from 01.04.2016 to 21.09.2017. The contract was valid until 31.03.2018. Disputes arose regarding the quality and number of personnel provided. The Corporate Debtor acknowledged a sum of Rs. 30 lakhs to be paid by 15.09.2017, but only Rs. 12 lakhs was released, leaving Rs. 18 lakhs outstanding. The Corporate Debtor terminated the services of the Operational Creditor, citing issues

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The ratio is that if the debt is above the threshold and no pre-existing dispute exists,

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**Reasoning:** The court reasoned that the outstanding amount exceeded the threshold limit of Rs. 1

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if a debt

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**Application:** The court applied this to the facts by noting the debt was above the threshold

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** AP Securitas Pvt.…
- **Respondents:** E-Complex P…

## Timeline

- **2016-12-15 — Work Order Pl…**: The Corporate Debtor placed a work order on the Operational Creditor for providing…
- **2016-04-01 — Supply of…**: The Operational Creditor supplied…

## 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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