# In the matter of Qi Network Enterprise Private Limited IB-986 (ND)-2020

> NCLT judgment dated 2021-03-09. Citation: TCN-2021-NCLT-02761. JIL Information Technology Limited filed an application under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 9 Mar 2021
- **Citation:** TCN-2021-NCLT-02761
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/qi-network-enterprise-private-limited-ib-986-nd-2020-7b680441

## Summary

### Background

JIL Information Technology Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the corporate insolvency resolution process (CIRP) against Qi Network Enterprise Private Limited, alleging a default of Rs. 97,73,307/- for material supplied. The applicant claimed that NICSI received an order from IIT Ropar and outsourced the optical fibre and data cable delivery and installation work to Qi Network, who then outsourced it to JIL. JIL raised 17 invoices, and after adjustments, Rs. 2,62,20,906/- was due. Qi Network made payments totaling Rs. 1,24,21,990/- by 30.09.2017, leaving a balance of Rs. 1,37,98,916/-. A credit note of Rs. 15,50,000/- was issued, and a further payment of Rs. 24,75,609/- was made, leaving a cumulative

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## Facts

On 18.02.2017, National Informatics Centre Services Inc. (NICSI) received an order from the Indian Institute of Technology, Ropar (IIT Ropar). NICSI issued a purchase order to Qi Network Enterprise Private Limited outsourcing optical fibre and data cable delivery and installation work. Qi Network then outsourced this work to JIL Information Technology Limited. JIL agreed to deliver networking items to IIT Ropar as per Qi Network's purchase orders and to conduct a final survey. JIL raised 17 invoices totaling Rs. 2,63,52,090/-. After adjusting Rs. 1,31,184/- for TDS on 31.03.2017, Rs. 2,62,20,906/- was due. Installation work was delayed due to site readiness issues at IIT Ropar, discussed by NICSI with the Construction Management Group (CMG) on 26.02.2018. Payments were

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## Issues and analysis

### Issue 1: Whether there was a pre-existing dispute between the operational creditor (JIL Information …

**Ratio:** The legal principle applied is that for an application under Section 9 of the IBC to be

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**Reasoning:** The court reasoned that the termination letter dated 18.07.2018, sent by Qi Network to

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**Interpretation:** The interpretation of the legal issue revolves around the definition and timing

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**Application:** In this specific case, the court applied the ratio and reasoning to the facts

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## Parties

- **Judges:** SHRI. P.S.N.…; V.K. SUB…
- **Appellants:** JIL Information…
- **Respondents:** Qi Network…

## Timeline

- **2017-02-18 — NICSI Receive…**: National Informatics Centre Services Inc.…
- **2017-02-01 — NICSI Issues Purchase…**: NICSI issued a purchase order to Qi Network Enterprise Private Limited outsourcing…

## 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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