# In the matter of Mama Mia Foods Private Limited

> NCLT judgment dated 2023-08-07. Citation: TCN-2023-NCLT-02140. Sumedha Fiscal Services Limited, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 7 Aug 2023
- **Citation:** TCN-2023-NCLT-02140
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mama-mia-foods-private-limited-f53dd249

## Summary

### Background

Sumedha Fiscal Services Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Mama Mia Foods Private Limited, the Corporate Debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The petition was based on an alleged default of Rs. 2,37,765/-, comprising principal and interest, with the date of default stated as February 16, 2018. The Operational Creditor claimed to have provided financial advisory services to the Corporate Debtor, for which invoices were raised, and part payments were made. However, the Corporate Debtor disputed the outstanding amount, contending that the 'inception fee' paid should be adjusted against the total invoiced amount and that the entire

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## Facts

Sumedha Fiscal Services Limited (Operational Creditor) filed a petition against Mama Mia Foods Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The Operational Creditor claimed a default of Rs. 2,37,765/- (principal and interest), with the date of default being February 16, 2018. The Operational Creditor provided financial advisory services to the Corporate Debtor, for which invoices were raised. The Corporate Debtor paid an 'inception fee' of Rs. 2,00,000 plus service tax. The Corporate Debtor made a part payment of Rs. 1,50,000/- against an invoice dated November 9, 2017. The Operational Creditor served a demand notice on August 23, 2019, demanding payment of Rs. 2,37,765/-. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the threshold for initiating CIRP under Section 9 of the Insolvency and Bankruptcy Code, …

**Ratio:** The revised minimum threshold of Rs. 1 Crore for initiating CIRP is applicable from the

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**Reasoning:** The court relied on the notification dated March 24, 2020, by the Ministry of Corporate

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**Interpretation:** The revised minimum threshold for initiating CIRP is a jurisdictional

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**Application:** In this case, the amount of default claimed by the Operational Creditor was Rs.

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## Parties

- **Judges:** Ms.Bidisha…; Balraj…
- **Appellants:** Sumedha Fiscal…
- **Respondents:** Mama Mia Foods…

## Timeline

- **2017-01-06 — Assignment…**: Corporate Debtor signed Assignment Letter, paying inception fee of Rs.2,00,000 plus…
- **2017-11-09 — Second Invoic…**: Operational Creditor raised second invoice amounting to Rs.3,12,500/- plus applicable GST…

## 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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