# 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-02366. The case involves an application by Midas Impex Private Limited (Operational Creditor) against…

- **Court:** NCLT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLT-02366
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prince-swr-systems-private-limited-cp-ib-no-4345-of-2019-a3a7ec3d

## Summary

### Background

The case involves an application 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 filed a company petition against Prince SWR Systems Private Limited 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. Prince SWR Systems Private Limited opposed the admission of the petition. The Corporate Debtor was directed to file Vakalatnama and reply by 17.02.2021. The Corporate Debtor sought further time, claiming the brief was entrusted to the counsel only recently. Midas Impex Private Limited submitted that Prince SWR Systems Private Limited had paid Rs. 10 lakhs through RTGS on 09.12.2019, subsequent to the filing of the company petition. This part payment was considered by the court as an admission of debt. The Corporate

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## Issues and analysis

### Issue 1: Whether the company petition filed by Midas Impex Private Limited against Prince SWR Systems …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the facts and circumstances, including the part payment made by the

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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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…**: Prince SWR Systems Private Limited paid Rs. 10 lakhs to Midas Impex Private Limited…
- **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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