# In the matter of Smartron Indian Pvt. Ltd. VS ZTE Corporation CA(AT)(Insolvency) 733-2019

> NCLAT judgment dated 18 Jul 2019. Citation: TCN-2019-NCLAT-00436. The case originated from an application filed by M/s. ZTE Corporation (Respondent) under…

- **Court:** NCLAT
- **Order date:** 18 Jul 2019
- **Citation:** TCN-2019-NCLAT-00436
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/smartron-indian-pvt-ltd-vs-zte-corporation-ca-799669e2

## Summary

### Background

The case originated from an application filed by M/s. ZTE Corporation (Respondent) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) in January 2019, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Smartron Indian Private Limited (Appellant/Corporate Debtor). Following the issuance of notice, the Corporate Debtor filed its reply, to which the Respondent subsequently filed a rejoinder. This procedural exchange set the stage for further applications by the Corporate Debtor.

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## Facts

M/s. ZTE Corporation, the Respondent, initiated proceedings against M/s. Smartron Indian Private Limited, the Appellant and Corporate Debtor, by filing an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) in January 2019. This application sought to trigger the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, alleging a default in payment. Following the filing, a notice was duly issued to the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Corporate Debtor's request to file a…

**Ratio:** An application for initiating the Corporate Insolvency Resolution Process under the IBC…

**Reasoning:** The NCLAT reasoned that applications under Sections 7, 9, or 10 of the IBC are for…

**Interpretation:** The NCLAT interpreted the nature of IBC applications as distinct from regular…

**Application:** Applying this interpretation, the NCLAT found that the Corporate Debtor had…

## Parties

- **Judges:** S.J. Mukhop…; KanthiNar…
- **Advocates:** For the Appellant:…; M.V. Mu…; +2 more

## Timeline

- **January, 2019 — Application…**: M/s. ZTE Corporation filed an application under Section 9 of the IBC against M/s.…
- **June 21, 2019 — Request rejecte…**: The Adjudicating Authority (NCLT, Hyderabad Bench) rejected the Corporate Debtor's…

## 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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