# In the matter of Prince Swr Systems Private Limited CP (IB) NO. 4345 OF 2019

> NCLT judgment dated 2021-04-16. Citation: TCN-2021-NCLT-02355. The case pertains to an application filed by Midas Impex Private Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLT-02355
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prince-swr-systems-private-limited-cp-ib-no-4345-of-2019-0d50ab9f

## Summary

### Background

The case pertains to an application filed by Midas Impex Private Limited (Operational Creditor) against Prince SWR Systems Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) due to non-clearance of professional dues amounting to Rs. 24,65,135. The Corporate Debtor filed a reply raising various contentions and opposing the admission of the company petition.

## Facts

Midas Impex Private Limited (Operational Creditor) filed a company petition against Prince SWR Systems Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP due to non-payment of professional dues amounting to Rs. 24,65,135. The Corporate Debtor opposed the admission of the petition. During the proceedings, the Corporate Debtor made a part payment of Rs. 10 lakhs to the Operational Creditor after the filing of the petition. The Corporate Debtor sought adjournments, claiming that the brief was entrusted to the counsel only recently. The court noted that the Corporate Debtor was delaying the process by changing advocates frequently. The part payment of Rs. 10 lakhs by the Corporate Debtor after the

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## Issues and analysis

### Issue 1: Whether the company petition filed by the Operational Creditor should be admitted for initiation of …

**Ratio:** The legal principle is that if a debt exists and the Corporate Debtor has defaulted in

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**Reasoning:** The court reasoned that the Corporate Debtor's part payment after the filing of the

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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 the ratio to the facts by considering the part payment as an

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## Parties

- **Judges:** H.V. Subb…; Shyam Babu…
- **Appellants:** Midas Impex Pvt…
- **Respondents:** Prince SWR…; Prince Swr…

## Timeline

- **2019-12-09 — Part Payment by…**: The Corporate Debtor made a part payment of Rs. 10 lakhs through RTGS to the Operational…
- **2021-02-17 — Earlier…**: The Corporate Debtor was directed to file…

## 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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