# In the matter of Purple Thought India Private Limited

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00512. The case involves an application filed by Ms. Richa Dave, an Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 30 Nov 2023
- **Citation:** TCN-2023-NCLT-00512
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/purple-thought-india-private-limited-33fe83e4

## Summary

### Background

The case involves an application filed by Ms. Richa Dave, an Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Purple Thoughts India Private Limited, the Corporate Debtor, for defaulting on a payment of Rs. 4,15,730/-. The application was filed due to the Corporate Debtor's failure to pay for services rendered under contracts dated 25.04.2017 and 05.06.2017. A demand notice was issued on 28.12.2021.

## Facts

Ms. Richa Dave, the Applicant/Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Purple Thoughts India Private Limited, the Corporate Debtor/Respondent. The application was based on the Corporate Debtor's alleged default in payment of Rs. 4,15,730/- for services rendered under contracts dated 25.04.2017 and 05.06.2017. The Applicant terminated the contract via email on 25.04.2019. The amount of Rs. 4,15,730/- fell due on 25.04.2019. A statutory demand notice was sent on 28.12.2021. The application was filed on 20.01.2022. The key fact is that the debt amount was less than Rs. 1 crore, and the application was filed after the notification dated

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The pecuniary threshold limit for initiating CIRP under Section 4 of the IBC is

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**Reasoning:** The court relied on the notification dated 24.03.2020 and judgments from the NCLAT and

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**Interpretation:** Section 4 of the IBC, as amended, stipulates that Part II of the IBC applies to

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**Application:** In this case, the application was filed on 20.01.2022, and the demand notice

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Richa…
- **Respondents:** Purple Thoughts…

## Timeline

- **2017-04-25 — Contract…**: One of the contract dates between the…
- **2017-06-05 — Contract…**: Another contract date between the…

## 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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