# In the matter of UM Green Lighting Private Limited Company Petition No. (IB)-42(PB)-2021

> NCLT judgment dated 2021-05-03. Citation: TCN-2021-NCLT-02215. The case pertains to a petition filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 3 May 2021
- **Citation:** TCN-2021-NCLT-02215
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/um-green-lighting-private-limited-company-petition-no-ib-42pb-2021-74fc7634

## Summary

### Background

The case pertains to a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Mr. Shyam Prakash Singh, proprietor of M/s. Maa Sharda Electronics System, an operational creditor, against M/s. UM Green Lighting Private Limited, the corporate debtor. The operational creditor initiated the Corporate Insolvency Resolution Process (CIRP) due to the corporate debtor's inability to liquidate outstanding dues. The petitioner is engaged in the business of manufacturing and wholesaling solar products and had supplied goods to the corporate debtor, with payment due within 45 days of each invoice. The petitioner reminded the corporate debtor multiple times for the pending dues but the corporate debtor failed to make the payment. The petitioner sent a demand

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## Facts

Mr. Shyam Prakash Singh, proprietor of M/s. Maa Sharda Electronics System, is an operational creditor engaged in manufacturing and wholesaling solar products. M/s. UM Green Lighting Private Limited is the corporate debtor. The operational creditor supplied goods to the corporate debtor, with payment due within 45 days of each invoice. The corporate debtor failed to make payments despite reminders. The operational creditor sent a demand notice dated 2020-03-21. The claim amount in the petition is less than one crore rupees. A notification dated 2020-03-24 increased the minimum default amount for initiating insolvency proceedings to one crore rupees. The petition was filed after this notification.

## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** The threshold limit for initiating insolvency proceedings is determined by the

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**Reasoning:** The court reasoned that the threshold limit is a criterion for determining the

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**Interpretation:** The notification increasing the threshold limit applies to the filing date of

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**Application:** Since the claim amount was less than one crore rupees and the petition was

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** Shyam Prakash…
- **Respondents:** M/s. UM Green…

## Timeline

- **2020-03-21 — Demand N…**: The Petitioner sent the demand…
- **2020-03-24 — Notification…**: The Central Government issued a notification enhancing the minimum default amount for…

## 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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