# In the matter of SCM Garments Private Limited CP-1118-IB-2018

> NCLT judgment dated 2021-12-17. Citation: TCN-2021-NCLT-00136. Unique Roof Private Limited, the operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 17 Dec 2021
- **Citation:** TCN-2021-NCLT-00136
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/scm-garments-private-limited-cp-1118-ib-2018-84f6da4e

## Summary

### Background

Unique Roof Private Limited, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against SCM Garments Private Limited, the corporate debtor, seeking initiation of Corporate Insolvency Resolution Process (CIRP). The application was filed due to an alleged default in payment of operational debt. The operational creditor claimed a total debt of Rs. 28,45,369/- which included principal and interest. The application was received on 07.08.2018.

## Facts

Unique Roof Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against SCM Garments Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP) due to unpaid operational debt. The application was received on 07.08.2018. The Operational Creditor claimed a total debt of Rs. 28,45,369/- which included principal and interest calculated up to 29.05.2018. The debt arose from invoices for work done between 28.10.2017 and 23.12.2017. The Corporate Debtor argued that they had already paid a substantial amount of Rs. 2,03,30,930/- against the total project cost of Rs. 2,14,61,195/-. The Corporate Debtor also claimed that the work done by the Operational Creditor was

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## Issues and analysis

### Issue 1: Whether the Tribunal has the pecuniary jurisdiction to entertain the application under Section 9 of …

**Ratio:** The Tribunal has the jurisdiction if the application was filed before the notification

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**Reasoning:** The court noted that the application was filed on 07.08.2018, which was before the

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**Interpretation:** Section 4 of the IBC, 2016, specifies the minimum threshold for initiating

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**Application:** Since the application was filed before the amendment increasing the threshold,

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## Parties

- **Judges:** R. Sucha…; SAMMER…
- **Appellants:** Unique Roof…
- **Respondents:** SCM Garments…

## Timeline

- **2018-07-08 — Application…**: Unique Roof Private Limited filed an application under Section 9 of the IBC against SCM…
- **2018-07-28 — Statutory Dema…**: Statutory Demand Notice Form-3 was…

## 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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