M/s. ZTE Corporation filed a petition against M/s. Smartron India Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging default in repaying USD 1,397,166. ZTE Corporation, an operational creditor, claimed Smartron India Private Limited, the corporate debtor, failed to make payments for supplied smart phones as per a Supply Agreement dated 07.12.2017. The operational creditor supplied Tphone units based on purchase orders, with payment terms of 100% through 90 days Letter of Credit from the date of shipment. Disputes arose regarding payment for invoices, leading to the insolvency petition.
ZTE Corporation, an operational creditor based in China, filed a petition against Smartron India Private Limited, a corporate debtor, for defaulting on a payment of USD 1,397,166. In 2017, Smartron approached ZTE for the supply of smart phones, leading to a Supply Agreement dated 07.12.2017. Smartron placed purchase orders for Tphone units, with payment terms of 100% through 90 days Letter of Credit from the date of shipment. ZTE supplied 18,800 Tphone units initially, and later, at Smartron's request, 1,200 units were dispatched to Palestine instead of India. ZTE raised invoices, but Smartron failed to make payments. Smartron issued Letters of Credit, but these were rejected by ICICI Bank due to reasons like 'LC Expired' and 'LC Closed'. ZTE submitted documents for
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Parties entered into a Supply Agreement…
Corporate Debtor placed Purchase Order dated…
M/s. ZTE Corporation filed a petition against M/s. Smartron India Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging default in repaying USD 1,397,166. ZTE Corporation, an operational creditor, claimed Smartron India Private Limited, the corporate debtor, failed to make payments for supplied smart phones as per a Supply Agreement dated 07.12.2017. The operational creditor supplied Tphone units based on purchase orders, with payment terms of 100% through 90 days Letter of Credit from the date of shipment. Disputes arose regarding payment for invoices, leading to the insolvency petition.
ZTE Corporation, an operational creditor based in China, filed a petition against Smartron India Private Limited, a corporate debtor, for defaulting on a payment of USD 1,397,166. In 2017, Smartron approached ZTE for the supply of smart phones, leading to a Supply Agreement dated 07.12.2017. Smartron placed purchase orders for Tphone units, with payment terms of 100% through 90 days Letter of Credit from the date of shipment. ZTE supplied 18,800 Tphone units initially, and later, at Smartron's request, 1,200 units were dispatched to Palestine instead of India. ZTE raised invoices, but Smartron failed to make payments. Smartron issued Letters of Credit, but these were rejected by ICICI Bank due to reasons like 'LC Expired' and 'LC Closed'. ZTE submitted documents for
…Parties entered into a Supply Agreement…
Corporate Debtor placed Purchase Order dated…