# In the matter of Skytone Electricals (India) Ltd. IB-1762-(ND)-2019

> NCLT judgment dated 2021-03-08. Citation: TCN-2021-NCLT-02784. The case involves an application filed by M/s Parnami Security and Manpower Services Private…

- **Court:** NCLT
- **Order date:** 8 Mar 2021
- **Citation:** TCN-2021-NCLT-02784
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/skytone-electricals-india-ltd-ib-1762-nd-2019-0e906739

## Summary

### Background

The case involves an application filed by M/s Parnami Security and Manpower Services Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Skytone Electricals (India) Ltd. (Corporate Debtor) for an alleged default of Rs. 6,63,529/- including interest towards security services. The Operational Creditor claims to have provided security services to the Corporate Debtor based on an agreement, raising invoices for which payment was defaulted. The Corporate Debtor disputes the existence of debt and default, claiming that the alleged agreement was with a different entity and that there was no privity of contract.

## Facts

M/s Parnami Security and Manpower Services Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Skytone Electricals (India) Ltd. (Corporate Debtor). The Operational Creditor claimed a default of Rs. 6,63,529/- including interest for security services provided. The Operational Creditor stated that they were in the business of providing manpower and security guards, and had an agreement with the Corporate Debtor to supply security guards on a regular basis. They raised various invoices, but the Corporate Debtor defaulted on payments. The Corporate Debtor, however, denied the existence of any debt or default, claiming that the agreement

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of debt and default on the part of …

**Ratio:** The adjudicating authority must determine if there is a plausible contention requiring

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**Reasoning:** The court found that the Operational Creditor had submitted sufficient evidence,

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**Interpretation:** The court interpreted the requirements for initiating CIRP under Section 9 of

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

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** M/s Parnami…
- **Respondents:** Skytone Electrical…

## Timeline

- **2016-01-01 — Insolvency and…**: Section 9 of the Insolvency and…
- **2018-05-01 — Invoice P…**: The operational creditor has alleged than an amount due and payable for the period…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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