# In the matter of The Mobile Store Services Ltd. CP (IB)-1604-(MB)-2017

> NCLT judgment dated 2018-03-20. Citation: TCN-2018-NCLT-01671. Drive India Enterprises Solutions Ltd. filed a petition as an operational creditor against The…

- **Court:** NCLT
- **Order date:** 20 Mar 2018
- **Citation:** TCN-2018-NCLT-01671
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/the-mobile-store-services-ltd-cp-ib-1604-mb-2017-0a6e3ecc

## Summary

### Background

Drive India Enterprises Solutions Ltd. filed a petition as an operational creditor against The Mobile Store Services Ltd. to initiate Corporate Insolvency Resolution Process (CIRP) due to an outstanding operational debt of ₹6,50,26,151. The debt arose from unpaid invoices for the supply of goods/products (mobiles of Gionee and Oppo). The petitioner claimed that the corporate debtor failed to pay the invoices as per the terms of trade (TOT-1 and TOT-2) and purchase orders. The operational creditor served a demand notice under Section 8 of the Insolvency and Bankruptcy Code (IBC) on 25.09.2017.

## Facts

Drive India Enterprises Solutions Ltd. (Operational Creditor) filed a petition against The Mobile Store Services Ltd. (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP) for an outstanding operational debt of ₹6,50,26,151. The debt arose from unpaid invoices for the supply of mobiles (Gionee and Oppo). The terms of trade were established through emails (TOT-1 for Gionee and TOT-2 for Oppo) and purchase orders. The Operational Creditor sent a demand notice on 25.09.2017, which was received by the Corporate Debtor on 27.09.2017. The Corporate Debtor admitted to a debt of ₹6,49,57,484, but a balance of ₹68,667 remained to be reconciled. The Corporate Debtor made some payments between April 2016 and October 2017 towards specific invoices.

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor for initiating Corporate Insolvency …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the documents and evidence presented by the operational creditor,

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

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**Application:** The court found that the operational creditor had established the existence of

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Drive India…
- **Respondents:** The Mobile store…
- **Advocates:** Rajen M…; Sameer P…; +4 more

## Timeline

- **2014-09-11 — Terms of Trade…**: Initial Terms of Trade for Oppo ("TOT-2")…
- **2014-09-23 — Terms of Trade for Oppo…**: Terms of Trade for Oppo confirmed…

## 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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