# In the matter of BLS E-Services Pvt. Ltd. IB-600-ND-2017

> NCLT judgment dated 2018-04-26. Citation: TCN-2018-NCLT-01487. The case involves an application filed by Topsgrup Services Ltd. (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 26 Apr 2018
- **Citation:** TCN-2018-NCLT-01487
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bls-e-services-pvt-ltd-ib-600-nd-2017-0a0f92b1

## Summary

### Background

The case involves an application filed by Topsgrup Services Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against BLS E-Services Pvt. Ltd. (Corporate Debtor). The Operational Creditor provided guarding services to the Corporate Debtor based on a purchase order issued in June 2016. Disputes arose regarding unpaid invoices for services rendered between May and September 2017. The Corporate Debtor claimed deductions for penalties due to non-availability or improper uniform of security guards, while the Operational Creditor disputed these deductions. The Corporate Debtor also alleged breach of contract by the Operational Creditor for withdrawing services during the

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## Facts

Topsgrup Services Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against BLS E-Services Pvt. Ltd. (Corporate Debtor). The Operational Creditor provided guarding services to the Corporate Debtor based on a purchase order dated 14.06.2016. The term of services was initially for 5 years, subject to annual renewal. A common purchase order was issued for Rs. 3,36,43,490/-. The Operational Creditor issued invoices for services rendered between May 2017 and September 2017, but some invoices remained unpaid. The total outstanding debt claimed was Rs. 67,16,002/-. The Corporate Debtor claimed deductions from the invoices for penalties due to

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5)(i)(a) to (e) of the IBC outlines the requirements for admitting an

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**Reasoning:** The NCLT found that the Operational Creditor had provided services to the Corporate

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**Interpretation:** Section 9 of the IBC provides a mechanism for operational creditors to initiate

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**Application:** The NCLT applied the provisions of Section 9 of the IBC to the facts of the

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** TOPSGRUP SERVICES…
- **Respondents:** BLS E-Services…

## Timeline

- **2016-04-18 — Contract A…**: The Corporate Debtor was awarded a contract to operate, maintain, and manage Seva Kendras…
- **2016-06-14 — Purchase Orde…**: A common purchase order bearing order no. 21 dated 14.06.2016 for an amount of Rs.…

## 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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