# In the matter of Glocal Healthcare Systems Private Limited CP (IB) No. 804-KB-2018

> NCLT judgment dated 2018-09-27. Citation: TCN-2018-NCLT-00702. M/s. Rent A Computer, the Operational Creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 27 Sept 2018
- **Citation:** TCN-2018-NCLT-00702
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/glocal-healthcare-systems-private-limited-cp-ib-no-804-kb-2018-17e90fcc

## Summary

### Background

M/s. Rent A Computer, the Operational Creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against the Corporate Debtor, M/s. Glocal Healthcare Systems Private Limited, to initiate Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor allegedly failed to pay dues amounting to Rs. 27,69,606/- for the rent of computers supplied. An agreement dated 08.09.2014 was in place, where the Operational Creditor provided computers to the Corporate Debtor on rent. The agreement was initially for 8 months and later extended. The Operational Creditor claimed an outstanding sum of Rs. 17,56,081/- via a letter dated 01.04.2018 and requested the return of the computers. A demand notice under Section 8 of the I&B Code was sent,

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## Facts

M/s. Rent A Computer (Operational Creditor) supplied computers to Glocal Healthcare Systems Private Limited (Corporate Debtor) under a rental agreement dated 2014-09-08. The initial agreement was for 8 months, later extended. The Corporate Debtor allegedly failed to pay rent amounting to Rs. 27,69,606. The Operational Creditor claimed Rs. 17,56,081 outstanding via a letter dated 2018-04-01 and requested the computers' return. A demand notice was sent under Section 8 of the I&B Code. The Corporate Debtor claimed the agreement terminated on 2017-01-12 and requested the Operational Creditor to take back the computers. The Corporate Debtor argued the Operational Creditor was illegally levying rent. The Corporate Debtor's first email regarding termination was dated

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## Issues and analysis

### Issue 1: Whether there is a pre-existing dispute about the claim and whether the dispute is genuine, …

**Ratio:** The Adjudicating Authority must determine if there is a plausible contention requiring

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**Reasoning:** The court examined the records and arguments from both sides to determine if a genuine

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**Interpretation:** This issue involves interpreting the scope of 'dispute' under the IBC and the

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**Application:** The court applied the Mobilox Innovations ruling to assess whether the

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## Parties

- **Judges:** Madan B.…
- **Appellants:** M/s. Rent A…
- **Respondents:** Glocal Healthcare…

## Timeline

- **2014-09-08 — Agreement…**: Agreement between Rent A Computer and Glocal Healthcare Systems Private Limited for…
- **2015-04-30 — Agreement Ex…**: Operational Creditor's letter indicating extension of the agreement beyond the initial 8…

## 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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