# In the matter of Elite Townships Private Limited (IB)-816(ND)2021

> NCLT judgment dated 2022-07-12. Citation: TCN-2022-NCLT-01754. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 12 Jul 2022
- **Citation:** TCN-2022-NCLT-01754
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/elite-townships-private-limited-ib-816nd2021-5398e6da

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by G4S Secure Solutions (India) Private Limited (Operational Creditor) against M/s. Elite Townships Private Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for security services provided under an agreement dated 24.07.2017. The application was filed on 19.08.2021.

## Facts

G4S Secure Solutions (India) Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against M/s. Elite Townships Private Limited (Corporate Debtor). An agreement was executed between the parties on 24.07.2017, where the Operational Creditor was appointed to provide security services to the Corporate Debtor. The Corporate Debtor was required to pay the amount as per the invoices raised by the Operational Creditor within 7 working days of receipt. The Corporate Debtor failed to make payments for the services provided. The Operational Creditor issued a demand notice dated 06.02.2020 under Section 8 of the IBC, 2016. The total amount claimed was Rs.

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable when the operational debt is …

**Ratio:** The threshold limit for initiating CIRP under Section 9 of the IBC is Rs. 1 Crore for

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**Reasoning:** The Adjudicating Authority relied on the NCLAT's decision in Jumbo Paper Products Vs.

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**Interpretation:** Section 4 of the IBC, read with the notification dated 24.03.2020 and the

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**Application:** In this case, the application was filed on 19.08.2021, and the total claim was

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## Parties

- **Judges:** SHRI. DHARMINDER…; SHRI. L. N.…
- **Appellants:** G4S SECURE…
- **Respondents:** M/s. Elite…

## Timeline

- **2017-07-24 — Agreement Ex…**: Agreement executed between G4S Secure Solutions…
- **2017-08-07 — First De…**: A part of the debt fell…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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