# In the matter of Hytera Communications Corporation Limited & Ors. vs. Simoco Telecommunications (South Asia) Limited

> NCLAT judgment dated 2023-11-07. Citation: TCN-2023-NCLAT-00091. The case involves two appeals against the orders of the National Company Law Tribunal (NCLT),…

- **Court:** NCLAT
- **Order date:** 7 Nov 2023
- **Citation:** TCN-2023-NCLAT-00091
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/hytera-communications-corporation-limited-ors-vs-simoco-telecommunications-9f468370

## Summary

### Background

The case involves two appeals against the orders of the National Company Law Tribunal (NCLT), Kolkata Bench, regarding a petition filed by Hytera Communications Corporation Limited (Operational Creditor) against Simoco Telecommunications (South Asia) Limited (Corporate Debtor). The NCLT disposed of the petition filed by the Operational Creditor with certain directions. Both the Operational Creditor and the Corporate Debtor, being aggrieved by the order, filed appeals challenging the orders. The core issue revolves around the Corporate Debtor's failure to make payments for goods supplied by the Operational Creditor, despite repeated acknowledgements of the debt and assurances of payment. The Corporate Debtor cited difficulties in obtaining necessary clearances from the

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## Facts

Hytera Communications Corporation Limited (Operational Creditor) supplied goods to Simoco Telecommunications (South Asia) Limited (Corporate Debtor) based on purchase orders placed in 2012 and 2013. The Corporate Debtor failed to make full payment for the invoices issued, resulting in an outstanding amount of USD 1,441,490.78 by the end of 2013. The Corporate Debtor issued a guarantee letter dated 31.12.2013, promising to pay the outstanding amount by 15.04.2014, but failed to do so. The Corporate Debtor acknowledged the debt in subsequent letters in 2014 and 2015, assuring payment. The Operational Creditor issued a statutory notice in 2016 and a demand notice in 2017 under Section 8 of the Insolvency and Bankruptcy Code (IBC), claiming USD 621,348.05. A company

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in refusing to admit the Section 9 application for …

**Ratio:** The Adjudicating Authority is required to admit a Section 9 application if a debt is

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**Reasoning:** The Adjudicating Authority erred in holding that no default was committed by the

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**Interpretation:** The IBC mandates the initiation of CIRP when an operational debt is undisputed

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**Application:** In this case, the Corporate Debtor acknowledged the debt and repeatedly assured

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Prakash…
- **Respondents:** Simoco Telecommuni…

## Timeline

- **2012-04-26 — Purchase…**: Corporate Debtor placed purchase…
- **2012-12-06 — Purchase…**: Corporate Debtor placed purchase…

## 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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