# In the matter of India Sports Flashes Pvt. Ltd. IB-1258-ND-2018

> NCLT judgment dated 2019-05-08. Citation: TCN-2019-NCLT-03381. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 8 May 2019
- **Citation:** TCN-2019-NCLT-03381
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/india-sports-flashes-pvt-ltd-ib-1258-nd-2018-1f53e959

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s. Rationalheads Technologies Pvt. Ltd. (Operational Creditor) against M/s. India Sports Flashes Pvt. Ltd. (Corporate Debtor) for initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for digital marketing and related services provided under an agreement. The Corporate Debtor acknowledged the debt but sought delays in payment. The Operational Creditor issued a statutory demand notice, but no response was received within the stipulated timeline. The Corporate Debtor later raised a dispute regarding the quality of services provided, which the Adjudicating Authority found to be

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## Facts

M/s. Rationalheads Technologies Pvt. Ltd. (Operational Creditor) provided digital marketing and related services to M/s. India Sports Flashes Pvt. Ltd. (Corporate Debtor) under an Internet Advertising Services Agreement dated 06.06.2017. The Operational Creditor raised invoices on 19.07.2017 and 08.09.2017 for Rs.2,74,708/- and Rs.2,20,289/- respectively, which were acknowledged by the Corporate Debtor. The Corporate Debtor acknowledged the payment liability via emails dated 23.08.2017, 14.09.2017, 19.12.2017, 21.12.2017, and 09.01.2018, promising to pay the amounts due. A statutory demand notice under Section 8 of the Insolvency and Bankruptcy Code was sent on 01.02.2018. No response to the demand notice was received within the stipulated timeline. The amount claimed

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## Issues and analysis

### Issue 1: Whether the contention raised by the Corporate Debtor that there was a dispute regarding the …

**Ratio:** A dispute raised after the statutory demand notice has been served cannot be considered a

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**Reasoning:** The Adjudicating Authority observed that the Corporate Debtor raised the dispute

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**Interpretation:** The interpretation of 'pre-existing dispute' is crucial in determining the

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**Application:** In this case, the Corporate Debtor's dispute was raised after the statutory

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## Parties

- **Judges:** DEEPTI M…; Pradeep R.…
- **Appellants:** M/s Rationalheads…
- **Respondents:** M/s India Sports…

## Timeline

- **2016-08-01 — Corporate Debtor…**: M/s. India Sports Flashes…
- **2017-06-06 — Agreement…**: Internet Advertising Services Agreement was entered into between the Operational Creditor…

## 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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