# In the matter of Beetel Teletech Ltd. vs. Arcelia IT Services Pvt. Ltd.

> NCLAT judgment dated 2023-09-11. Citation: TCN-2023-NCLAT-00214. Beetel Teletech Ltd. (Appellant) filed an appeal under Section 61 of the Insolvency and…

- **Court:** NCLAT
- **Order date:** 11 Sept 2023
- **Citation:** TCN-2023-NCLAT-00214
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/beetel-teletech-ltd-vs-arcelia-it-services-pvt-ltd-62214ba0

## Summary

### Background

Beetel Teletech Ltd. (Appellant) filed an appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016, against the order dated 17.10.2022 passed by the Adjudicating Authority (National Company Law Tribunal, Delhi Bench) in CP(IB) No. 58(ND)2022. The Adjudicating Authority had dismissed the Section 9 application filed by the Appellant seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Arcelia IT Services Pvt. Ltd. (Respondent). The Adjudicating Authority dismissed the Section 9 application on the ground that the Appellant had failed to establish beyond doubt that the unpaid operational debt was subsisting above the minimum threshold limit of Rs.1 crore.

## Facts

Beetel Teletech Ltd. (Appellant/Operational Creditor) filed a Section 9 application seeking initiation of CIRP against Arcelia IT Services Pvt. Ltd. (Respondent/Corporate Debtor). The Adjudicating Authority dismissed the application because the unpaid operational debt was allegedly below the Rs. 1 crore threshold. The Appellant and Respondent had a Channel Partner Registration Form. The Corporate Debtor raised a purchase order on 25.10.2019, and the Operational Creditor supplied goods and services, raising invoice No. RV1927813879 dated 31.12.2019. Payments remained due despite reminders. A Section 8 demand notice was issued. The Corporate Debtor did not reply to the demand notice. The Appellant claimed an amount of Rs. 1,15,11,486/- including principal and interest.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in dismissing the Section 9 application on the …

**Ratio:** Section 60 of the Indian Contract Act, 1872, allows the creditor to apply payments at its

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**Reasoning:** The Tribunal found that the Adjudicating Authority erred in holding that the Appellant

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**Interpretation:** Section 60 of the Indian Contract Act, 1872, grants the creditor the right to

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**Application:** The Tribunal applied the principle of Section 60 of the Indian Contract Act,

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Beetel Teletech…
- **Respondents:** Arcelia IT…
- **Advocates:** K.P. S…

## Timeline

- **2019-10-25 — Purchase…**: Corporate Debtor raised…
- **2019-12-31 — Invoice R…**: Operational Creditor raised…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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