# In the matter of Krisfo Infotech Solutions Private Limited C.P (IB) No. 127-BB-2020

> NCLT judgment dated 2020-08-24. Citation: TCN-2020-NCLT-00792. The case involves an application filed by M/s. CMS IT Services Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 24 Aug 2020
- **Citation:** TCN-2020-NCLT-00792
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krisfo-infotech-solutions-private-limited-cp-ib-no-127-bb-2020-92af1135

## Summary

### Background

The case involves an application filed by M/s. CMS IT Services Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Krisfo Infotech Solutions Private Limited (Corporate Debtor) for defaulting on a payment of Rs. 19,87,390. The case was listed for admission on multiple dates and adjourned at the request of the parties to facilitate settlement.

## Facts

M/s. CMS IT Services Private Limited, the Operational Creditor, filed C.P. (IB) No. 127/BB/2020 under Section 9 of the IBC seeking to initiate CIRP against M/s. Krisfo Infotech Solutions Private Limited, the Corporate Debtor. The basis for the application was a default of Rs. 19,87,390. The case was listed for admission on several dates, including 28.02.2020, 26.02.2020, 11.06.2020, 29.06.2020, 03.08.2020, and 24.08.2020, and was repeatedly adjourned at the parties' request to allow for settlement negotiations. Ultimately, the parties reached an amicable settlement, leading the Operational Creditor to request withdrawal of the petition. The court, finding the petition at the admission stage, granted the withdrawal.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be initiated against M/s. Krisfo …

**Ratio:** The initiation of CIRP under Section 9 of the IBC requires the existence of a debt and a

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**Reasoning:** The court noted that the case was at the admission stage and the parties had settled the

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**Interpretation:** Section 9 of the IBC provides a mechanism for Operational Creditors to initiate

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**Application:** In this case, the court did not apply the provisions of Section 9 to initiate

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. CMS IT…
- **Respondents:** M/s. Krisfo…

## Timeline

- **2020-02-28 — Case Listed for…**: The case was initially…
- **2020-02-26 — Case Listed for…**: The case was listed for…

## 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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