# In the matter of Praxis Home Retail Limited CP (IB) No.3018-MB.IV-2019

> NCLT judgment dated 2020-08-04. Citation: TCN-2020-NCLT-00905. The case involves a petition filed by M/s Profile Interiors, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 4 Aug 2020
- **Citation:** TCN-2020-NCLT-00905
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/praxis-home-retail-limited-cp-ib-no3018-mbiv-2019-81df9734

## Summary

### Background

The case involves a petition filed by M/s Profile Interiors, an operational creditor, against Praxis Home Retail Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed a default of ₹30,27,792.00. The corporate debtor argued that there were disputes regarding the claims, including extra work done without approval and settled amounts.

## Facts

M/s Profile Interiors, a proprietorship, is the operational creditor, engaged in interior contracting. Praxis Home Retail Limited is the corporate debtor, a listed public company dealing in furniture and homeware. In June 2015, the corporate debtor outsourced projects to the operational creditor under an agreement valid until 17.07.2017. The operational creditor claimed that payments were due for 31 projects, with five projects having outstanding dues. The total debt claimed was ₹30,27,792.00, including principal and interest. The operational creditor served a demand notice dated 08.05.2019. The corporate debtor, in its reply dated 18.10.2019, contended that the bill for 'Project Red Carpet' was for extra work without approval and that other claims had been settled.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is in default of a debt …

**Ratio:** Section 4(1) of the IBC stipulates a minimum default amount of one lakh rupees for

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**Reasoning:** The court found that the debt claimed by the Operational Creditor exceeded the minimum

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**Interpretation:** Section 4(1) sets the financial threshold for triggering the insolvency

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**Application:** The court applied the ratio to the facts by noting that the claimed debt was

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## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** M/s Profile…
- **Respondents:** Praxis Home…
- **Advocates:** Arch…; Sachin A.…; +1 more

## Timeline

- **2015-06-01 — Agreement between…**: Corporate Debtor approached the Operational Creditor and outsourced several projects by…
- **2017-07-17 — Agreement V…**: The agreement between the Corporate Debtor and Operational Creditor was valid up to this…

## 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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