# In the matter of Kellton Tech Solutions Limited vs. Actas Technologies Private Limited

> NCLAT judgment dated 2024-01-10. Citation: TCN-2024-NCLAT-00695. This case involves an appeal filed by M/s Kellton Tech Solutions Limited against an order…

- **Court:** NCLAT
- **Order date:** 10 Jan 2024
- **Citation:** TCN-2024-NCLAT-00695
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kellton-tech-solutions-limited-vs-actas-technologies-private-limited-a3f7269f

## Summary

### Background

This case involves an appeal filed by M/s Kellton Tech Solutions Limited against an order passed by the National Company Law Tribunal (NCLT), Allahabad Bench, which dismissed their application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The NCLT dismissed the application on the grounds that a pre-existing dispute existed between Kellton Tech Solutions (the Appellant, an IT company) and M/s Actas Technologies Private Limited (the Respondent) concerning a Software Development and Service Agreement. Kellton Tech claimed that Actas Technologies failed to pay the last two invoices for services rendered, while Actas Technologies argued that Kellton Tech did not complete the services as per the agreement and that the delivered software was of poor

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## Facts

M/s Kellton Tech Solutions Limited (Appellant), an IT company, entered into a "Software Development and Service Agreement" with M/s Actas Technologies Private Limited (Respondent) on 17.09.2020 for developing a customized e-wallet platform. Kellton Tech claimed to have provided services as per the agreement, completing work up to the User Acceptance Testing (UAT) stage and raising invoices. Actas Technologies allegedly failed to pay the last two invoices, totaling Rs 29,50,000 (dated 11.12.2020) and Rs 1,46,32,000 (dated 21.07.2021), despite having paid earlier invoices. Kellton Tech issued a demand notice under Section 8 of the IBC on 08.10.2021, which Actas Technologies replied to on 19.10.2021. Kellton Tech then filed an application under Section 9 of the

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## Issues and analysis

### Issue 1: Whether, in the facts of the case, there is a …

**Ratio:** The legal principle applied is that a pre-existing dispute, if proven, bars the

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**Reasoning:** The court reasoned that multiple events, including email exchanges, a third-party audit

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**Interpretation:** The interpretation of 'pre-existing dispute' is broad, encompassing any dispute

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**Application:** The court applied the ratio to the facts by examining the evidence presented by

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** M/s Kellton Tech…
- **Respondents:** M/s Actas…

## Timeline

- **2020-09-17 — Agreement…**: M/s Kellton Tech Solutions Limited and M/s Actas Technologies Private Limited entered…
- **2020-09-24 — Invoice P…**: Actas Technologies paid an…

## 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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