# In the matter of Mr. Babu Rao Kodali Vs. Vajra IOT Pvt. Ltd and Anr. ,Company Appeal (AT) (CH) (Ins.) No. 359 of 2022&I.A. No. 822, 823 & 824 of 2022

> NCLAT judgment dated 2022-11-18. Citation: TCN-2022-NCLAT-00089. This case involves an appeal against an order dated 2022-09-16 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 18 Nov 2022
- **Citation:** TCN-2022-NCLAT-00089
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-babu-rao-kodali-vs-vajra-iot-pvt-ltd-and-anr-company-appeal-040f02c4

## Summary

### Background

This case involves an appeal against an order dated 2022-09-16 passed by the National Company Law Tribunal (NCLT), Hyderabad Bench-I, which dismissed an application filed under the Insolvency and Bankruptcy Code, 2016. The appellant, Mr. Babu Rao Kodali, is a Member of Suspended Board of Directors of Navayuga Infotech Pvt. Ltd., the Corporate Debtor. The Corporate Debtor had placed purchase orders with Vajra IOT Pvt. Ltd. (formerly known as 'Green Ark Enersol Pvt. Ltd.'), the Operational Creditor, for the supply and installation of AMR modems for a project by Tamil Nadu Generation and Distribution Company (TANGEDCO).

## Facts

Navayuga Infotech Pvt. Ltd. (Corporate Debtor) placed purchase orders with Vajra IOT Pvt. Ltd. (Operational Creditor) for the supply and installation of 20,000 AMR modems for a project by TANGEDCO. The purchase orders stipulated that all supplies needed to be made within 60 days. The Operational Creditor supplied only 16,140 modems and installed only 2,945 modems. The Corporate Debtor transferred the right to claim performance from TANGEDCO to the Operational Creditor. The Corporate Debtor initiated arbitration proceedings against TANGEDCO for recovery of dues. The Operational Creditor raised invoices on the Corporate Debtor for purchasing and availing services pertaining to 16,130 AMR modules. The Corporate Debtor paid Rs. 2,77,27,150 to the Operational Creditor, with

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## Issues and analysis

### Issue 1: Whether there exists debt which is due …

**Ratio:** The definition of 'debt' under Section 3(11) of the I&B Code, 2016, means a liability

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**Reasoning:** The Appellate Tribunal observed that the Corporate Debtor acknowledged the supply of

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**Interpretation:** The definitions of 'debt', 'claim', 'financial creditor', 'financial debt',

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**Application:** In this case, the Corporate Debtor acknowledged the supply of modems and made

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## Parties

- **Judges:** Naresh Sa…; M. Venu…
- **Appellants:** Babu Rao…
- **Respondents:** Navayuga Infotech…; Vajra IOT Pvt.…
- **Advocates:** E. Om Pr…; Adithya…; +2 more

## Timeline

- **2015-11-03 — Purchase…**: 2nd Respondent placed 2 Purchase Orders on 1st Respondent for the supply and installation…
- **2018-12-08 — NOC Issu…**: 2nd Respondent issued ‘NOC’ admitting to the supply of 16,130 modems and installation…

## 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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