# In the matter of O-Zone Networks Pvt. Ltd. IB-1445-ND-2019

> NCLT judgment dated 2019-09-04. Citation: TCN-2019-NCLT-01581. The case pertains to an application filed by BSMART Tech. (P) Limited, an Operational Creditor…

- **Court:** NCLT
- **Order date:** 4 Sept 2019
- **Citation:** TCN-2019-NCLT-01581
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/o-zone-networks-pvt-ltd-ib-1445-nd-2019-2e94936b

## Summary

### Background

The case pertains to an application filed by BSMART Tech. (P) Limited, an Operational Creditor (OC), under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating the Corporate Insolvency Resolution Process (CIRP) against O-ZONE NETWORKS (P) LTD, the Corporate Debtor (CD), due to default in payment of operational debt. The petitioner claims that the corporate debtor has defaulted on payments for services related to SMS Network and bulk SMS MT services.

## Facts

BSMART Tech. (P) Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against O-ZONE NETWORKS (P) LTD, the Corporate Debtor. The Corporate Debtor was incorporated on 01.08.2007. The Operational Creditor provided SMS Network and bulk SMS MT services to the Corporate Debtor, raising four invoices totaling Rs. 18,05,420.73. The invoices remained unpaid. A demand notice was issued on 03.12.2018 under Section 8 of the IBC, 2016. The Corporate Debtor did not pay the amount or provide a notice of dispute. The Corporate Debtor's advocate initially stated no defense but could not file Vakalatnama. The Corporate Debtor did not appear before the Tribunal to defend its case despite receiving notice. The

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the IBC, 2016, is …

**Ratio:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP against a

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**Reasoning:** The Tribunal observed that the Operational Creditor had followed the procedure prescribed

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The Operational Creditor, BSMART Tech. (P) Limited, followed the prescribed

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## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** BSMART TECH. (P)…
- **Respondents:** O-ZONE NETWORKS…
- **Advocates:** Rohan Ka…; Ashmi M…; +2 more

## Timeline

- **2007-08-01 — Incorporation of…**: O-ZONE NETWORKS (P) LTD…
- **2016-09-01 — Invoice…**: First invoice (BTPLINTBLK…

## 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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