# In the matter of Mytrah Energy (India) Private Limited

> NCLT judgment dated 2023-12-19. Citation: TCN-2023-NCLT-00168. The case involves an application filed by Scorpius Trackers Private Limited (the Petitioner)…

- **Court:** NCLT
- **Order date:** 19 Dec 2023
- **Citation:** TCN-2023-NCLT-00168
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mytrah-energy-india-private-limited-43fbe7b9

## Summary

### Background

The case involves an application filed by Scorpius Trackers Private Limited (the Petitioner) under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Mytrah Energy (India) Private Limited (the Respondent). The Petitioner claimed that the Respondent defaulted in discharging a debt due to the Petitioner. The Respondent refuted the claims, asserting that there were disputes regarding the quality of work and that the claims arose from different service orders, which cannot be consolidated. The Respondent also argued that the Petitioner's representative lacked proper authorization and that the debt was disputed.

## Facts

Scorpius Trackers Private Limited (Petitioner) sought to initiate CIRP against Mytrah Energy (India) Private Limited (Respondent) for alleged debt default. The Petitioner and Respondent had agreements for the supply of materials and supervisory services for solar power projects. The Petitioner issued invoices totaling Rs 18,06,65,068, which were acknowledged by the Respondent. The Respondent made a partial payment of Rs 16,19,26,048, leaving an outstanding debt of Rs 1,16,41,059 as of 25.03.2020. The Petitioner issued two demand notices: one for Rs 38,08,778 (due on 29.09.2019) and another for Rs 78,32,281 (due on 23.02.2020). The Respondent claimed disputes regarding the quality of work and asserted that the claims arose from different service orders. The Respondent

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable when the Petitioner has combined …

**Ratio:** Section 8 of the IBC mandates the issuance of 'a demand notice' by the operational

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**Reasoning:** The court reasoned that the Petitioner aggregated the amounts from two demand notices to

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**Interpretation:** Section 8 requires a single demand notice for a debt exceeding the threshold.

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**Application:** The Petitioner issued two demand notices, neither of which met the threshold

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Scorpius Trackers…
- **Respondents:** Mytrah Energy…

## Timeline

- **2019-11-29 — First Demand…**: Petitioner issued a demand notice claiming…
- **2019-12-13 — Respondent's Reply to…**: Respondent replied to the first demand…

## 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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