# In the matter of Nikhil Footwears Pvt. Ltd. IB-1424-(ND)-2019

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-02272. Alig International, an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-02272
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nikhil-footwears-pvt-ltd-ib-1424-nd-2019-fff25d6a

## Summary

### Background

Alig International, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Nikhil Footwear Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor failed to make payment for an invoice dated 30.10.2013, amounting to Rs. 12,34,051. The corporate debtor denied the contention, arguing that the application was not maintainable, the claim was time-barred, and there was a pre-existing dispute regarding the quality of goods supplied.

## Facts

Alig International, a proprietorship firm operating since 1990, filed an application as an operational creditor against Nikhil Footwear Pvt. Ltd., claiming a default on an invoice dated 30.10.2013 for Rs. 12,34,051. The operational creditor stated that the corporate debtor had accepted the goods without dispute. The corporate debtor made payments totaling Rs. 7,76,123, leaving an unpaid amount of Rs. 4,97,902. The parties engaged in regular business until 16.01.2015, after which they entered into a settlement agreement. The last payment was received on 01.06.2019. The operational creditor issued a demand notice on 02.04.2019. The corporate debtor contended that the application was not maintainable, the claim was time-barred, and there was a pre-existing dispute

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable considering the threshold limit …

**Ratio:** The threshold limit for applications filed under Section 7 or 9 of the IBC is Rs. 1

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**Reasoning:** The court reasoned that the MCA notification dated 24.03.2020 unambiguously clarifies

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**Interpretation:** The MCA notification was interpreted to mean that the threshold limit of Rs. 1

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**Application:** In this case, the application was revived on 31.03.2022, and the debt claimed

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## Parties

- **Judges:** DHARMINDER…; SUMITAPURKA…
- **Appellants:** ALIG INTERN…
- **Respondents:** NIKHIL FOOTWEAR…; M/s. Nikhil…

## Timeline

- **1990-01-01 — Alig International…**: Alig International, a…
- **2013-10-30 — Invoice…**: Date of the invoice for which…

## 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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