# In the matter of Metro Cash and Carry India Pvt. Ltd. I.A No. 124 & 126 of  2023 in CP (IB) No.134-BB-2022

> NCLT judgment dated 2023-05-25. Citation: TCN-2023-NCLT-03186. NWCC Supply Chain Solutions Private Limited, the operational creditor/petitioner, filed a…

- **Court:** NCLT
- **Order date:** 25 May 2023
- **Citation:** TCN-2023-NCLT-03186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/metro-cash-and-carry-india-pvt-ltd-ia-no-124-126-of-2023-in-cp-ib-no134-bb-2022-6ed12e36

## Summary

### Background

NWCC Supply Chain Solutions Private Limited, the operational creditor/petitioner, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against Metro Cash and Carry India Pvt. Ltd, the corporate debtor/respondent. The petition claimed a default of Rs. 1,91,92,730/-. The Tribunal had previously dismissed a similar petition (CP (IB) No. 133/2022) filed by a sister concern against the same corporate debtor due to the debt amount being below the threshold limit of Rs. 1 crore mandated by the IBC. The petitioner was granted liberty to file a fresh petition in a prior order dated 24.01.2020.

## Facts

NWCC Supply Chain Solutions Private Limited (Operational Creditor) filed a petition under Section 9 of the IBC against Metro Cash and Carry India Pvt. Ltd (Corporate Debtor) claiming a default of Rs. 1,91,92,730/-. The amount included a principal debt of Rs. 72,35,714/-, interest up to 28 Feb 2022 of Rs. 1,16,92,067/-, and cost of assets of Rs. 2,64,949/-. The respondent argued that there was no agreement to pay interest or cost of assets. The agreements between the parties dated back to 2011-2014 and were terminated in 2014, with the last invoice dated 10.11.2014. The petitioner submitted that the date of default was 15.01.2016. A previous petition by a sister concern against the same corporate debtor was dismissed for not meeting the threshold limit of Rs. 1 crore.

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## Issues and analysis

### Issue 1: Whether the threshold mandated …

**Ratio:** Section 4 of the IBC mandates a minimum threshold for initiating CIRP. The total amount

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**Reasoning:** The Tribunal observed that the amount claimed included principal, interest, and cost of

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**Interpretation:** Section 4 of the IBC requires a minimum threshold of debt for initiating CIRP.

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**Application:** In this case, the Tribunal found that the petitioner had improperly included

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** NWCC Supply Chain…
- **Respondents:** Metro Cash and…
- **Advocates:** Gagan Ch…; Roshan Geroge…; +4 more

## Timeline

- **2011-01-01 — Agreements E…**: Agreements executed between the petitioner and respondent dated back to years 2011 to…
- **2014-01-01 — Agreements Te…**: All agreements were…

## 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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