# In the matter of Frontline (NCR) Business Solutions Pvt. Ltd. Company Application No. 878-ND-2020

> NCLT judgment dated 2021-06-08. Citation: TCN-2021-NCLT-02012. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 Jun 2021
- **Citation:** TCN-2021-NCLT-02012
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/frontline-ncr-business-solutions-pvt-ltd-company-application-no-878-nd-2020-163e9c58

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s. Essjay Ericsson Pvt. Ltd. (Operational Creditor) against M/s. Frontline (NCR) Business Solutions Pvt. Ltd. (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an unpaid operational debt of Rs. 1,44,14,378.55/-, including principal and interest. The Corporate Debtor contended that there was a pre-existing dispute regarding the quality and timely delivery of goods, and that the Operational Creditor had failed to supply the agreed quantity of materials. The Corporate Debtor also argued that the demand notice was defective.

## Facts

M/s. Essjay Ericsson Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Frontline (NCR) Business Solutions Pvt. Ltd. (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor owed them Rs. 1,44,14,378.55/- as unpaid operational debt, including principal and interest. The Corporate Debtor contended that there was a pre-existing dispute regarding the quality and timely delivery of goods. The Corporate Debtor had been awarded a work order by CSC Wi-fiChoupal Services India Pvt. Ltd. for the supply, installation, and commission of "Wi-Fi Choupal Program Me" in 5000 Gram Panchayats. The Operational Creditor

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute between the Operational Creditor and the Corporate Debtor …

**Ratio:** The existence of a pre-existing dispute, as defined under Section 5(6) of the IBC, 2016,

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**Reasoning:** The Adjudicating Authority relied on the decisions of the Supreme Court in Mobilox

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**Interpretation:** Section 5(6) of the IBC, 2016, defines "dispute" broadly to include

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**Application:** In this case, the Adjudicating Authority found that the Corporate Debtor had

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** M/s. Essjay…
- **Respondents:** M/s. Frontline…

## Timeline

- **2018-03-01 — Work Order…**: The Respondent Company (Corporate Debtor) was awarded a work order by CSC Wi-fiChoupal…
- **2018-06-18 — Purchase Orde…**: The Respondent Company issued a Purchase Order to the Applicant Company for supply of…

## 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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