# In the matter of MPS Car Care and Services Private Limited C.P. No. 2480-IBC-MB-2018

> NCLT judgment dated 2023-04-11. Citation: TCN-2023-NCLT-03863. The case involves a petition filed by 3M India Limited, the Operational Creditor, under Section…

- **Court:** NCLT
- **Order date:** 11 Apr 2023
- **Citation:** TCN-2023-NCLT-03863
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mps-car-care-and-services-private-limited-cp-no-2480-ibc-mb-2018-6c62a5a5

## Summary

### Background

The case involves a petition filed by 3M India Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against MPS Car Care & Services Private Limited, the Corporate Debtor, for defaulting on a payment of Rs. 1,44,23,432.48. The Corporate Debtor opposed the admission of the petition, claiming a dispute and alleging that the Operational Creditor failed to remit VAT payments. The Operational Creditor argued that the Corporate Debtor admitted to the invoices and default in their reply and highlighted a Demand Notice issued earlier.

## Facts

3M India Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against MPS Car Care & Services Private Limited (Corporate Debtor) due to a default in payment amounting to Rs. 1,44,23,432.48. The Corporate Debtor claimed there was a dispute because the Operational Creditor allegedly failed to remit VAT payments and provided an incorrect TIN number. The Operational Creditor contended that the Corporate Debtor admitted to the invoices and default in their reply and highlighted a Demand Notice issued earlier. The invoices pertained to the year 2016, and the petition was filed on 28.06.2018. The Corporate Debtor did not appear before the tribunal despite specific directions. The Operational Creditor

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The NCLT was convinced that there was an 'Operational debt' due and payable by the

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**Interpretation:** The court interpreted the provisions of Section 9 of the IBC to mean that if an

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**Application:** The court applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** 3M Indi…
- **Respondents:** MPS Car Care &…; MPS Car Care &…

## Timeline

- **2017-10-03 — Demand N…**: Demand Notice issued by the Operational…
- **2018-06-28 — CP Filed…**: Company Petition filed by 3M India Limited against MPS Car Care & Services Private…

## 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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