# In the matter of Prime Retail India Ltd. C.P. (IB) No. 1127-KB-2019

> NCLT judgment dated 2019-08-27. Citation: TCN-2019-NCLT-01741. The case involves an application filed by Swatch Group (India) Pvt. Ltd., an operational…

- **Court:** NCLT
- **Order date:** 27 Aug 2019
- **Citation:** TCN-2019-NCLT-01741
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prime-retail-india-ltd-cp-ib-no-1127-kb-2019-b3eb55b5

## Summary

### Background

The case involves an application filed by Swatch Group (India) Pvt. Ltd., an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Prime Retail India Ltd., the corporate debtor. The operational creditor claims an unpaid operational debt of Rs. 9,53,64,236/-.

## Facts

Swatch Group (India) Pvt. Ltd. (operational creditor) supplied watches to Prime Retail India Ltd. (corporate debtor) under retail agreements. The corporate debtor failed to make payments for the watches supplied since November 2018. The outstanding amount is Rs. 8,69,63,284/-. The operational creditor issued a demand notice on 21.05.2019 for Rs. 9,53,64,236/-, which includes interest at 18% p.a. The corporate debtor admitted to the non-payment in emails and a letter but did not raise any disputes in its reply to the demand notice. The operational creditor filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against the corporate debtor.

## Issues and analysis

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

**Ratio:** Section 9(3) of the Insolvency and Bankruptcy Code, 2016, specifies the requirements for

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**Reasoning:** The court reasoned that the Operational Creditor had furnished all necessary documents,

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**Interpretation:** Section 9 of the IBC is interpreted to mean that an application is complete if

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**Application:** The court applied the ratio to the facts by noting that the Operational

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Swatch Group…
- **Respondents:** Prime Retail…

## Timeline

- **2018-11-01 — Default in…**: The Corporate Debtor failed to make payments for the watches supplied by the Operational…
- **2018-12-10 — Admission of No…**: The Corporate Debtor admitted to the non-payment of the principal amount in emails dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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