# In the matter of C-Tel Infosystems Private Limited (IB)-295(ND) 2019

> NCLT judgment dated 2020-01-23. Citation: TCN-2020-NCLT-02201. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Jan 2020
- **Citation:** TCN-2020-NCLT-02201
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/c-tel-infosystems-private-limited-ib-295nd-2019-5cfa36cf

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by PVM Innvensys Private Limited (Operational Creditor) against C-TEL Infosystems Private Limited (Corporate Debtor) for unpaid operational debt. The Operational Creditor supplied GPS equipment and managed services to the Corporate Debtor under Master Service Agreements. Disputes arose regarding the amount due, with the Corporate Debtor denying the debt's existence and the supply of 804 GPS trackers. The Operational Creditor issued a demand notice, which the Corporate Debtor disputed, leading to the filing of the insolvency petition.

## Facts

PVM Innvensys Private Limited (Operational Creditor) supplied GPS equipment and managed services to C-TEL Infosystems Private Limited (Corporate Debtor) under Master Service Agreements dated 2014-05-02 and 2014-09-01. The Corporate Debtor made payments totaling Rs. 43,49,612/- and Rs. 5,41,120/- on 2015-03-13, deducting TDS. Further payments of Rs. 10,14,541/- were made on 2015-06-16, also with TDS deductions. An email dated 2015-10-15 from the Corporate Debtor confirmed an amount of Rs. 50,32,028/- payable for 804 vehicle trackers. A purchase order dated 2015-12-11 was issued for Rs. 3,67,200/- for 30 GPS trackers. The Operational Creditor supplied 30 GPS vehicle trackers vide Delivery Challan dated 2015-12-12. As of 2015-12-12, Rs. 53,99,228/- was outstanding. The

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' …

**Ratio:** Section 4 of the Insolvency and Bankruptcy Code, 2016, specifies that the minimum amount

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**Reasoning:** The Adjudicating Authority considered the documentary evidence and the Corporate Debtor's

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**Interpretation:** The term 'operational debt' is broadly defined under the IBC to include claims

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**Application:** The Adjudicating Authority determined that the outstanding amount of Rs.

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## Parties

- **Judges:** ABNI RANJAN KUMAR…
- **Appellants:** PVM INNVENSYS…
- **Respondents:** C-Tel Infosystems…

## Timeline

- **2014-05-02 — Master Service…**: Master Service Agreement between PVM Innvensys Private Limited and C-TEL Infosystems…
- **2014-09-01 — Managed Services…**: Managed Services Agreement between PVM Innvensys Private Limited and C-TEL Infosystems…

## Legal provisions

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

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