# In the matter of Fourth Dimension Solutions Ltd. (IB)-29(ND)-2019

> NCLT judgment dated 2019-04-02. Citation: TCN-2019-NCLT-04188. The petition was filed by ICAP IL India Pvt. Ltd. (Operational Creditor) under Section 9 of the…

- **Court:** NCLT
- **Order date:** 2 Apr 2019
- **Citation:** TCN-2019-NCLT-04188
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fourth-dimension-solutions-ltd-ib-29nd-2019-1910d398

## Summary

### Background

The petition was filed by ICAP IL India Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Fourth Dimension Solutions Ltd. (Corporate Debtor) due to non-payment of dues for services rendered. The Operational Creditor claimed that they arranged a loan facility of Rs. 35 crores for the Corporate Debtor from HDFC Bank, making the Corporate Debtor liable to pay Rs. 35,00,000/- along with GST. The Corporate Debtor only paid Rs. 5 lakhs and failed to remit the remaining amount despite repeated requests. The Corporate Debtor, in their reply, repudiated any liability to pay, stating that no term loan was arranged as per the invoice raised.

## Facts

ICAP IL India Pvt. Ltd. (Operational Creditor) filed a petition against Fourth Dimension Solutions Ltd. (Corporate Debtor) under Section 9 of the IBC, 2016, seeking to initiate CIRP. The Operational Creditor claimed that they arranged a loan facility of Rs. 35 crores for the Corporate Debtor from HDFC Bank, for which the Corporate Debtor was liable to pay Rs. 35,00,000/- plus GST. The Corporate Debtor only paid Rs. 5 lakhs and failed to remit the remaining amount. The terms of engagement were agreed upon via a letter of arrangement dated 2016-08-30, agreeing to pay service charges/commission @ 1% of the loans arranged for. The Corporate Debtor repudiated any liability, stating that no term loan was arranged as per the invoice. The Operational Creditor was successful in

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is liable to pay the Operational Creditor for the services rendered in …

**Ratio:** The principle of contractual obligation states that parties are bound by the terms of

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**Reasoning:** The court reasoned that the Corporate Debtor availed the financial assistance arranged by

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**Interpretation:** The interpretation of contractual obligation emphasizes that the substance of

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**Application:** The ratio and reasoning were applied to the facts by noting that the Corporate

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** ICAP IL India…
- **Respondents:** FOURTH DIMENSION…

## Timeline

- **2016-08-30 — Letter of Arr…**: Terms of engagement agreed upon via a letter of arrangement, agreeing to pay service…
- **2019-04-02 — Order Del…**: Order delivered by the NCLT, admitting…

## 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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