# In the matter of AS Technosoft Pvt. Ltd. Vs. Goldsquare Sales India Pvt. Ltd. CA (AT) No. 331-2017

> NCLAT judgment dated 2018-01-11. Citation: TCN-2018-NCLAT-00402. AS Technosoft Pvt. Ltd. ('Operational Creditor') filed an appeal against the order dated…

- **Court:** NCLAT
- **Order date:** 11 Jan 2018
- **Citation:** TCN-2018-NCLAT-00402
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/as-technosoft-pvt-ltd-vs-goldsquare-sales-india-pvt-ltd-ca-eb2bb793

## Summary

### Background

AS Technosoft Pvt. Ltd. ('Operational Creditor') filed an appeal against the order dated November 3, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, New Delhi. The application was preferred by the Appellant under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of ‘Corporate Insolvency Resolution Process' against the Respondent- M/s. Goldsquare Sales India Pvt. Ltd. (‘Corporate Debtor'). The application was rejected on the ground of ‘existence of dispute'.

## Facts

AS Technosoft Pvt. Ltd. ('Operational Creditor') filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against Goldsquare Sales India Pvt. Ltd. ('Corporate Debtor'). The Adjudicating Authority rejected the application due to the 'existence of a dispute'. AS Technosoft appealed this decision. The dispute arose from an agreement for sending e-mails, where Goldsquare Sales claimed substandard service. Goldsquare Sales issued an Advocate notice on August 29, 2017, alleging breach of contract and excess payment by AS Technosoft. AS Technosoft argued the dispute was raised only after a notice issued on September 8, 2017. Goldsquare Sales provided e-mail evidence showing a significant percentage

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## Issues and analysis

### Issue 1: Whether there was an 'existence of dispute' between the parties that warranted the rejection of the …

**Ratio:** The existence of a genuine dispute between the operational creditor and the corporate

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**Reasoning:** The court reasoned that the Advocate notice dated August 29, 2017, and the e-mail

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**Interpretation:** The 'existence of dispute' is interpreted broadly to include any genuine

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**Application:** The court applied the ratio to the facts of the case, finding that the Advocate

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** AS Technosoft…
- **Respondents:** Goldsquare Sales…

## Timeline

- **2017-08-29 — Advocate…**: Respondent issued an Advocate notice to Appellant alleging breach of contract and excess…
- **2017-09-08 — Notice I…**: Appellant claimed dispute was raised…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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