# In the matter of JSP Projects Pvt. Ltd. IB-1023-(ND)-2020

> NCLT judgment dated 2021-04-07. Citation: TCN-2021-NCLT-02440. SAM Business Continuity Services, an operational creditor, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 7 Apr 2021
- **Citation:** TCN-2021-NCLT-02440
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jsp-projects-pvt-ltd-ib-1023-nd-2020-cd5f777a

## Summary

### Background

SAM Business Continuity Services, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against JSP Projects Pvt. Ltd., the corporate debtor, for alleged default in clearing a debt of Rs. 4,26,38,271. The applicant claimed to have provided consultancy services to the respondent, who was bidding for tenders issued by the Jharkhand Government. A consultancy agreement dated 20.10.2018 was signed, stipulating a consultancy fee of 3% of the work order value awarded to the respondent. The applicant alleges that the respondent failed to pay the outstanding amount despite multiple invoices raised.

## Facts

SAM Business Continuity Services (the applicant), an operational creditor, filed an application against JSP Projects Pvt. Ltd. (the respondent), a corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The applicant claimed that the respondent defaulted on a debt of Rs. 4,26,38,271/-. The applicant provided consultancy services to the respondent for bidding on tenders issued by the Jharkhand Government. A consultancy agreement dated 20.10.2018 was signed, with a consultancy fee of 3% of the work order value. The applicant assisted the respondent in becoming the L1 bidder for a project. The respondent made an initial payment of Rs. 15 Lakh. The applicant raised multiple invoices for the remaining payment, but the respondent allegedly made some

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has established the existence of debt and default on the part of …

**Ratio:** The Operational Creditor must demonstrate the existence of a debt and a default in

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**Reasoning:** The Tribunal perused the documents filed by the Operational Creditor and heard the

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**Interpretation:** Section 9 of the IBC requires the Operational Creditor to provide sufficient

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**Application:** In this case, the Tribunal found that the invoices raised by the Operational

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## Parties

- **Judges:** SHRI. P.S.N.…; V.K. SUB…
- **Appellants:** SAM Business…
- **Respondents:** JSP Projects Pvt.…
- **Advocates:** Minakshi…; Dharamveer…; +2 more

## Timeline

- **2018-10-20 — Consultancy A…**: A consultancy agreement was signed between SAM Business Continuity Services and JSP…
- **2019-03-07 — Letter of…**: JBVNL issued a Letter of Intent (Ref No.…

## 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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