# In the matter of K.S. Softnet Solutions Private Limited C.P. (IB) No. 240-NCLT-MB-2019

> NCLT judgment dated 2020-06-17. Citation: TCN-2020-NCLT-01152. The case involves an application filed by Shree Associates, an operational creditor, under…

- **Court:** NCLT
- **Order date:** 17 Jun 2020
- **Citation:** TCN-2020-NCLT-01152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ks-softnet-solutions-private-limited-cp-ib-no-240-nclt-mb-2019-59fd0133

## Summary

### Background

The case involves an application filed by Shree Associates, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against KS Softnet Solutions Private Limited, the corporate debtor. Shree Associates alleged that KS Softnet Solutions defaulted on a payment of Rs. 2,12,704 with 18% interest per annum from the date of default. The petitioner supplied tiles/kerbs manufactured by them at the instance of the Corporate Debtor and invoices were raised during the period between 01/12/2013 to 01/12/2014 to the extent of Rs. 13,52,328/- and TDS of Rs. 14,025/- was deducted and deposited with the Income Tax department. The Corporate debtor made the payment of Rs.11,39,625/- till 16/04/2016 and Rs.2,12,104/- is due from the Corporate Debtor. It is

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## Facts

Shree Associates, an operational creditor, filed a petition against KS Softnet Solutions Private Limited, a corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 2,12,704/- with 18% interest. Shree Associates supplied tiles/kerbs to KS Softnet Solutions between 01/12/2013 and 01/12/2014, raising invoices totaling Rs. 13,52,328/-. TDS of Rs. 14,025/- was deducted and deposited. KS Softnet Solutions made payments totaling Rs. 11,39,625/- until 16/04/2016, and a further payment of Rs. 37,000/- on 16/04/2016 via NEFT. A statutory notice was issued on 25/09/2016 under the Companies Act, 2013, demanding the outstanding amount. The petition was filed on 16/01/2019. The corporate debtor did not have any representation despite

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## Issues and analysis

### Issue 1: Whether the demand notice issued by the operational creditor, Shree Associates, complies with the …

**Ratio:** Section 8 of the Insolvency and Bankruptcy Code, 2016, mandates that a demand notice must

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**Reasoning:** The NCLT observed that the demand notice issued by Shree Associates was under the

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**Interpretation:** Section 8 of the IBC is interpreted strictly to ensure that the corporate

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**Application:** In this case, the demand notice issued by Shree Associates did not comply with

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Shree Asso…
- **Respondents:** KS Softnet…

## Timeline

- **2012-09-11 — Orders P…**: KS Softnet Solutions placed…
- **2013-12-01 — Supply of Til…**: Shree Associates supplied tiles/kerbs to KS Softnet Solutions between 01/12/2013 and…

## 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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