# In the matter of Ramco Systems Ltd Vs Spicejet Ltd CA (AT) No.31-2018

> NCLAT judgment dated 2019-05-08. Citation: TCN-2019-NCLAT-00571. Ramco Systems Ltd. (Operational Creditor) filed an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 8 May 2019
- **Citation:** TCN-2019-NCLAT-00571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ramco-systems-ltd-vs-spicejet-ltd-ca-4a14c5fb

## Summary

### Background

Ramco Systems Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Spicejet Ltd. (Corporate Debtor). The Adjudicating Authority (National Company Law Tribunal), Bench-III, New Delhi, dismissed the application due to inconsistency in payments and non-compliance with Section 9(3)(c), specifically the absence of a certificate from the financial institution maintaining accounts of the Operational Creditor. The Adjudicating Authority observed that the Corporate Debtor had shown certain payments.

## Facts

Ramco Systems Ltd. (Operational Creditor) and Spicejet Ltd. (Corporate Debtor) entered into 'Aviation Software Solutions Agreements' on May 13, 2013. These agreements consisted of four parts: 'General Terms & Conditions', 'Software License Agreement', 'Professional Services Agreement', and 'Software Support Agreement'. On July 1, 2014, a 'Change Order Demand' was executed. The 'Software License Agreement' was amended to cover 55 Aircraft Tails and unlimited users. Ramco Systems claimed Spicejet owed Rs. 62.89 Lakhs, communicated via email on January 19, 2016, relating to documents dated May 30, 2013, and July 23, 2014. Spicejet's auditor's report was referenced. Spicejet argued that claims were based on invoices for 2013-14, including one dated July 23, 2014, due

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority rightly refused to entertain the application under Section 9 of …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 requires strict proof of debt and

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**Reasoning:** The court found that there was no evidence on record to suggest that the invoices dated

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**Interpretation:** Section 9 of the IBC mandates that an application must be supported by

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**Application:** In this case, the court held that the Adjudicating Authority rightly refused to

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Ramco Syste…
- **Respondents:** Spicejet…
- **Advocates:** Neeraj Ma…; Rajdev…; +9 more

## Timeline

- **2013-03-13 — Unbilled L…**: Appellant claimed an amount of…
- **2013-05-13 — Aviation Software…**: Ramco Systems Ltd. and Spicejet Ltd. entered into 'Aviation Software Solutions…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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