# In the matter of Skoda Auto Volkswagen India Private Limited

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-00248. This case involves an Interlocutory Application (IA (I.B.C) No. 1116/MB/2024) filed by Skoda…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-00248
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/skoda-auto-volkswagen-india-private-limited-46763928

## Summary

### Background

This case involves an Interlocutory Application (IA (I.B.C) No. 1116/MB/2024) filed by Skoda Auto Volkswagen India Private Limited (Applicant/Corporate Debtor) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking rejection of CP(IB) No. 1107/MB/2023 (Main Application) filed by Susee Automotive Private Limited (Respondent/Operational Creditor). The Respondent/OC sought initiation of Corporate Insolvency Resolution Process (CIRP) against the Applicant/CD based on an alleged default of Rs. 4,52,15,921/-, comprising principal and interest calculated under the MSMED Act. The Applicant/CD contested the application, arguing that the claims were barred by limitation, did not meet the threshold limit under Section 4 of the IBC, and that the interest claims

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## Facts

Skoda Auto Volkswagen India Private Limited (Applicant/Corporate Debtor) and Susee Automotive Private Limited (Respondent/Operational Creditor) had dealership agreements in place for Tirunelveli and Tiruchirappalli Districts in Tamil Nadu from 2013 to 2021. The Respondent/OC claimed that the Applicant/CD failed to make payments against invoices and various discounts, resulting in an outstanding amount of Rs. 97,41,134.39/-. The Respondent/OC issued a demand notice dated 14.12.2021 under Section 8 of the IBC for payment of Rs. 4,52,15,921/-, including interest as per Section 16 of the MSMED Act. The Applicant/CD denied liabilities, citing limitation and non-compliance with Section 4 of the IBC. The Respondent/OC filed the Main Application on 09.04.2022. The Applicant/CD

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## Issues and analysis

### Issue 1: Whether the Main Application is maintainable on account of the requisite threshold limit under …

**Ratio:** The threshold limit under Section 4 of the IBC requires the operational debt to be at

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**Reasoning:** The court found that the Respondent/OC's claim included interest under the MSMED Act to

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**Interpretation:** Section 4 of the IBC sets a minimum threshold for initiating CIRP. The MSMED

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**Application:** In this case, the Respondent/OC's claim, excluding the interest, was less than

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Respondents:** SKODA AUTO…; SUSEE AUTOMOTIVE…

## Timeline

- **2013-01-01 — Dealership Ag…**: Dealership Agreements between Skoda Auto Volkswagen India Private Limited and Susee…
- **2021-12-14 — Demand N…**: Susee Automotive Private Limited issued a demand notice to Skoda Auto Volkswagen India…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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