# In the matter of KRP Infrastrauctures & Builders Private Limited

> NCLT judgment dated 2023-08-22. Citation: TCN-2023-NCLT-01972. The case originates from an application filed by M/S. Pruthvi Steels, the Operational Creditor,…

- **Court:** NCLT
- **Order date:** 22 Aug 2023
- **Citation:** TCN-2023-NCLT-01972
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/krp-infrastrauctures-builders-private-limited-a80065a8

## Summary

### Background

The case originates from an application filed by M/S. Pruthvi Steels, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against KRP Infrastructures & Builders Pvt. Ltd, the Corporate Debtor, due to a default in payment of Rs. 10,06,521. The Corporate Debtor had issued a purchase order for TMT Bar FE-500, and the Operational Creditor raised two tax invoices accordingly. The Corporate Debtor initially issued a cheque which was dishonored. Subsequently, a portion of the amount was credited, but further cheques issued for the remaining amount were also dishonored. A demand notice was issued, but the outstanding amount remained unpaid. An earlier CIRP initiated by

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## Facts

M/S. Pruthvi Steels, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against KRP Infrastructures & Builders Pvt. Ltd, the Corporate Debtor. The Corporate Debtor issued a purchase order dated 17.01.2017 for TMT Bar FE-500, amounting to Rs. 19,36,250. The Operational Creditor raised two tax invoices: No. 052/16-17 dated 20.01.2017 for Rs. 9,73,277 and No. 053/16-17 dated 22.01.2017 for Rs. 9,79,188, totaling Rs. 19,52,465. The Corporate Debtor issued an Axis Bank Cheque No. 255109 dated 10.02.2017 for Rs. 19,36,250, which was dishonored. The Corporate Debtor credited Rs. 14,52,465 to the Operational Creditor's account. For the remaining Rs. 5,00,000, the Corporate Debtor issued cheque no.

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 4 of the I&B Code, 2016, specifies the minimum threshold for initiating CIRP.

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**Reasoning:** The Tribunal noted that the application was filed on 10.05.2019, when the threshold limit

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**Interpretation:** Section 4 of the I&B Code sets the pecuniary jurisdiction for initiating

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**Application:** Since the application was filed before the amendment, the threshold of Rs. 1

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/S. PRUTHVI…
- **Respondents:** KRP INFRASTRUCTURE…

## Timeline

- **2017-01-17 — Purchase…**: Corporate Debtor issued…
- **2017-01-20 — Tax Invo…**: Operational Creditor raised…

## 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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