# In the matter of Hippocampus Infotech Pvt. Ltd. CP (IB) No. 185-9-HDB-2018

> NCLT judgment dated 2018-11-12. Citation: TCN-2018-NCLT-00355. Smart Card IT Solutions Ltd filed a petition against Hippocampus Infotech Pvt Ltd under Section…

- **Court:** NCLT
- **Order date:** 12 Nov 2018
- **Citation:** TCN-2018-NCLT-00355
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hippocampus-infotech-pvt-ltd-cp-ib-no-185-9-hdb-2018-5ed320ca

## Summary

### Background

Smart Card IT Solutions Ltd filed a petition against Hippocampus Infotech Pvt Ltd under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging default in payment of Rs. 44,11,272/-. The operational creditor, Smart Card IT Solutions Ltd, supplied 3,00,000 units of 64K Scosta Smart Cards to the corporate debtor, Hippocampus Infotech Pvt Ltd, for a total value of Rs. 91,11,272.00 on credit basis as per invoice dated 31.01.2014. The invoice amount was due within 30 days, but the corporate debtor failed to repay despite reminders. Part payments were made, with the last payment on 11.04.2017, leaving a balance of Rs. 44,11,272/-. The operational creditor issued demand notices, including a notice sent on 19.12.2017 via courier, which was received by the corporate

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## Facts

Smart Card IT Solutions Ltd (Operational Creditor) supplied 3,00,000 units of 64K Scosta Smart Cards to Hippocampus Infotech Pvt Ltd (Corporate Debtor) as per purchase order HIPL/PO/SCIT/024 dated 30.01.2014. The total value of the goods was Rs. 91,11,272.00, based on an invoice dated 31.01.2014, with payment due within 30 days (02.03.2014). The Corporate Debtor failed to pay the full amount, despite repeated reminders. Part payments were made, with the last payment received on 11.04.2017. A balance of Rs. 44,11,272/- remained outstanding. The Operational Creditor issued a demand notice on 19.12.2017, which was received by the Corporate Debtor on 21.12.2017. The Corporate Debtor issued nine cheques, which were dishonored due to 'insufficient funds' or 'accounts

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court noted that the Corporate Debtor had admitted to placing an order for the supply

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**Interpretation:** The key is whether there is an undisputed debt and a failure to pay when due.

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**Application:** The Corporate Debtor's admission of the debt and the failure to clear the

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Smart Card IT…
- **Respondents:** Hippocampus…

## Timeline

- **2014-01-30 — Purchase…**: Corporate Debtor placed a purchase order for supply of 3,00,000 units of 64K Scosta Smart…
- **2014-01-31 — Invoice…**: Invoice issued for the…

## 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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