# In the matter of BLS E-Solutions Pvt. Ltd. IB-601-ND-2017

> NCLT judgment dated 2018-04-26. Citation: TCN-2018-NCLT-01492. M/s Topsgrup Services Ltd., the operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 26 Apr 2018
- **Citation:** TCN-2018-NCLT-01492
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bls-e-solutions-pvt-ltd-ib-601-nd-2017-a8532b48

## Summary

### Background

M/s Topsgrup Services Ltd., the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against BLS E-Solutions Pvt. Ltd., the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor provided guarding services to the corporate debtor based on a purchase order issued in June 2016. Disputes arose regarding unpaid invoices from May 2017 to September 2017, with the corporate debtor claiming deductions for penalties due to non-availability or improper uniform of security guards. The operational creditor issued a demand notice, which the corporate debtor disputed, citing breaches of contract and the need for reconciliation of accounts.

## Facts

M/s Topsgrup Services Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against BLS E-Solutions 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 5 years subject to renewal at the expiry of one year. A common purchase order bearing order no. 21 dated 14.06.2016 for an amount of Rs. 3,36,43,490/- was issued. The Operational Creditor issued various invoices for the period of May 2017 to September 2017, but some were left unpaid, totaling Rs. 1,27,17,300/-. The Corporate Debtor claimed deductions for penalties due to non-availability or improper uniform of security guards. The

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is complete and meets the requirements of …

**Ratio:** Section 9(5)(i)(a) to (e) of the Insolvency and Bankruptcy Code, 2016, outlines the

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

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**Interpretation:** The court interpreted Section 9(5)(i)(a) to (e) to mean that if the application

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**Application:** The court applied the ratio to the facts of the case, noting that the

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** M/s Topsgrup…
- **Respondents:** BLS E-Solutions…

## Timeline

- **2016-04-18 — Contract A…**: The Corporate Debtor was awarded a contract and appointed as a service operator to manage…
- **2016-06-14 — Purchase Orde…**: A common purchase order bearing order no. 21 was issued 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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