# In the matter of Getit Stores Pvt. Ltd. Company Petition No. (IB)-44(ND)-2017

> NCLT judgment dated 2017-04-13. Citation: TCN-2017-NCLT-00903. The case involves a petition filed by Nowfloats Technologies Pvt. Ltd. under Section 9 of the…

- **Court:** NCLT
- **Order date:** 13 Apr 2017
- **Citation:** TCN-2017-NCLT-00903
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/getit-stores-pvt-ltd-company-petition-no-ib-44nd-2017-0553f05a

## Summary

### Background

The case involves a petition filed by Nowfloats Technologies Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate insolvency proceedings against Getit Stores Pvt. Ltd., the 'Corporate Debtor'. Nowfloats Technologies claims to be an 'Operational Creditor' and alleges that Getit Stores defaulted in paying dues despite notice. The Corporate Debtor was already undergoing liquidation proceedings initiated by the Hon'ble High Court of Delhi. The petitioner, Nowfloats Technologies, and the respondent, Getit Stores, had entered into a Software Development Agreement dated 2015-05-25, where Nowfloats was assigned the contract to develop and design microsites and other related services. Nowfloats raised invoices in 2015 for the services rendered,

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## Facts

Nowfloats Technologies Pvt. Ltd. (the 'Operational Creditor') filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Getit Stores Pvt. Ltd. (the 'Corporate Debtor') for defaulting on payments. The Operational Creditor and the Corporate Debtor had entered into a Software Development Agreement on 2015-05-25, where the Operational Creditor was contracted to develop and design microsites. The Operational Creditor raised invoices in 2015 totaling Rs. 29,42,430 (excluding interest) for services rendered. The Corporate Debtor acknowledged the debt via email on 2016-07-05. The Operational Creditor issued a notice on 2016-10-07 under Section 433(e) and 434 of the Companies Act 1956 for winding up, but received no response. The Corporate Debtor was

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## Issues and analysis

### Issue 1: Whether the insolvency petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 is …

**Ratio:** The principle is that when a company is already undergoing winding-up proceedings under

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**Reasoning:** The court reasoned that the intent of the legislature is to provide a resolution

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**Interpretation:** The interpretation is that the IBC is not intended to override or disrupt

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**Application:** In this specific case, the Corporate Debtor was already undergoing liquidation

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## Parties

- **Judges:** Ina Mal…
- **Appellants:** M/s. Nowfloats…
- **Respondents:** M/s Getit Stores…

## Timeline

- **2015-05-25 — Software Development…**: Nowfloats Technologies Pvt. Ltd. and Getit Stores Pvt. Ltd. entered into a Software…
- **2015-01-01 — Invoices…**: Nowfloats Technologies Pvt. Ltd. raised various invoices in 2015 for services rendered,…

## 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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