# In the matter of Nitya Realtech Pvt. Ltd. IB-198-(ND)-2022

> NCLT judgment dated 2022-08-05. Citation: TCN-2022-NCLT-01448. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 5 Aug 2022
- **Citation:** TCN-2022-NCLT-01448
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nitya-realtech-pvt-ltd-ib-198-nd-2022-9d26939f

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s Sawaria Seth Infratech Pvt. Ltd. (Operational Creditor) against M/s Nitya Realtech Pvt. Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed to have supplied civil construction material and executed civil construction work for the Corporate Debtor's project, 'Officer City' at Raj Nagar Extension, Ghaziabad, Uttar Pradesh. The Corporate Debtor allegedly defaulted on payments, leading to the filing of the application.

## Facts

M/s Sawaria Seth Infratech Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Nitya Realtech Pvt. Ltd. (Corporate Debtor). The Corporate Debtor approached the Operational Creditor for the supply of civil construction material for its project 'Officer City' in Ghaziabad. The Corporate Debtor issued work orders between 2018 and 2019. The Operational Creditor continued work under the supervision of the Corporate Debtor. The Operational Creditor sent emails in August 2020 reminding the Corporate Debtor of outstanding payments. A legal notice was issued on October 25, 2021. The Corporate Debtor issued a cheque of Rs. 25,00,000 towards part payment, which was dishonored. The Corporate Debtor issued a

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## Issues and analysis

### Issue 1: Whether there is an "operational …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016, stipulates the pecuniary threshold

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**Reasoning:** The NCLT determined that the outstanding operational debt amounted to Rs. 1,77,87,056/-,

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**Interpretation:** Section 4 sets the minimum debt amount required for triggering the insolvency

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**Application:** Since the debt exceeded the

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## Parties

- **Judges:** Sh. Dharminder…; SH. L. N.…
- **Appellants:** M/s Sawaria Seth…
- **Respondents:** M/s Nitya…

## Timeline

- **2018-07-04 — Work Order…**: The Corporate Debtor issued work…
- **2019-09-03 — Work Order…**: The Corporate Debtor issued work…

## 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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