# In the matter of Skoda Auto Volkswagen India Private Limited

> NCLT judgment dated 2025-04-04. Citation: TCN-2025-NCLT-00257. This case involves an Interlocutory Application (IA) filed by Skoda Auto Volkswagen India…

- **Court:** NCLT
- **Order date:** 4 Apr 2025
- **Citation:** TCN-2025-NCLT-00257
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/skoda-auto-volkswagen-india-private-limited-bbfc10df

## Summary

### Background

This case involves an Interlocutory Application (IA) filed by Skoda Auto Volkswagen India Private Limited, the Applicant/Corporate Debtor (CD), seeking the rejection of a Corporate Insolvency Resolution Process (CIRP) application filed against them by Susee Automotive Private Limited, the Respondent/Operational Creditor (OC). The OC's application was based on an alleged default of Rs. 4,52,15,921/-, including principal and interest calculated under the MSMED Act, arising from unpaid invoices during the period when the OC was an authorized dealer for the CD in Tamil Nadu from 2013 to 2021.

## Facts

Skoda Auto Volkswagen India Private Limited (Applicant/CD) and Susee Automotive Private Limited (Respondent/OC) had a dealership agreement from 2013 to 2021, where Susee was an authorized dealer for Skoda in Tamil Nadu. Disputes arose over unpaid invoices, leading Susee to file a CIRP application under Section 9 of the IBC, claiming a default of Rs. 4,52,15,921/-, including principal and interest calculated under the MSMED Act. Skoda contested the application, arguing that the interest was not agreed upon, Susee was not a registered MSME during the relevant period, and the application was time-barred. Susee claimed MSME registration from 2016 and relied on email communications as acknowledgment of debt. Skoda offered Rs. 50,00,000/- as a goodwill gesture to settle the

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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 Tribunal found that the interest component of the debt was not agreed upon by the

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

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**Application:** In this case, the Tribunal determined that the interest claimed by the

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## Parties

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

## Timeline

- **2013-04-01 — Dealership Agreement…**: Dealership Agreements between Skoda Auto Volkswagen India Private Limited and Susee…
- **2017-02-15 — Dealership Agreement…**: The Dealership Agreement between…

## 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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