# In the matter of Kaka Sons Private Limited IB-615-(ND)-2021

> NCLT judgment dated 2022-07-21. Citation: TCN-2022-NCLT-04574. M/s Bajaj Kagaj Limited filed an application under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Jul 2022
- **Citation:** TCN-2022-NCLT-04574
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/kaka-sons-private-limited-ib-615-nd-2021-e8b02ecd

## Summary

### Background

M/s Bajaj Kagaj Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming to be an operational creditor against M/s Kaka Sons Private Limited, the corporate debtor, for initiation of Corporate Insolvency Resolution Process (CIRP).

## Facts

M/s Bajaj Kagaj Limited filed an application under Section 9 of the IBC as an operational creditor against M/s Kaka Sons Private Limited.

The operational creditor claimed Rs. 28,98,158/- from the corporate debtor.

The application was filed before the Tribunal on 20.02.2021.

The operational creditor sent a demand notice dated 17.07.2020 demanding payment of the unpaid operational debt.

The corporate debtor raised objections, stating that the claimed amount was less than the pecuniary limit mandated under the IBC, the operational creditor supplied more goods than ordered, and the quality of goods was inferior.

The MCA notification dated 24.03.2020 increased the threshold limit for initiating CIRP to Rs. 1 crore.

…

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC is maintainable when the claimed amount is less …

**Ratio:** The threshold limit of Rs. 1 crore is applicable to applications filed under Section 9 of

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**Reasoning:** The Tribunal relied on the NCLAT's judgment in Jumbo Paper Products V. Hansraj Agrofresh

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**Interpretation:** The MCA notification dated 24.03.2020 prospectively increased the threshold

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**Application:** Since the application was filed on 20.02.2021, and the statutory demand notice

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## Parties

- **Judges:** Sh. Dharminder…; BINOD KUMAR…
- **Appellants:** M/s Bajaj Kagaj…
- **Respondents:** M/s Kaka Sons…

## Timeline

- **17.07.2020 — Demand N…**: Operational Creditor sent a Demand Notice dated 17.07.2020 demanding payment of an unpaid…
- **2020-03-24 — MCA Notifi…**: MCA notification dated 24.03.2020 increased the threshold limit for initiating CIRP to…

## 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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