# In the matter of Vas Data Services Pvt. Ltd. IB-1683-(ND)-2018

> NCLT judgment dated 2019-04-09. Citation: TCN-2019-NCLT-04025. Crayon Software Experts India Pvt. Ltd., the Operational Creditor (OC), filed an application…

- **Court:** NCLT
- **Order date:** 9 Apr 2019
- **Citation:** TCN-2019-NCLT-04025
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vas-data-services-pvt-ltd-ib-1683-nd-2018-746bfc02

## Summary

### Background

Crayon Software Experts India Pvt. Ltd., the Operational Creditor (OC), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Vas Data Services Pvt. Ltd., the Corporate Debtor (CD), for initiation of the Corporate Insolvency Resolution Process (CIRP). The OC claimed that the CD defaulted on payments for software licenses provided based on purchase orders placed in 2015. Despite providing licenses and raising invoices, a balance of Rs. 80,41,269.76 remained outstanding, along with an additional claim of Rs. 12,21,195 as interest. A post-dated cheque issued by the CD bounced due to insufficient funds. The OC issued a demand notice, but no payment or response was received from the CD.

## Facts

Crayon Software Experts India Pvt. Ltd. (Operational Creditor) filed an application against Vas Data Services Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating CIRP. The Corporate Debtor was in the business of operating an online retailing brand known as "YEPME". The Operational Creditor provided software licenses to the Corporate Debtor based on purchase orders dated 18.11.2015, 01.12.2015, and 17.12.2015. The aggregate amount raised by way of invoices was Rs. 1,48,14,795.76, against which Rs. 67,73,526.00 was paid, leaving an outstanding balance of Rs. 80,41,269.76. An additional Rs. 12,21,195 was claimed as interest. A post-dated cheque for Rs. 65,66,354 issued by the Corporate Debtor bounced due to

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9(5)(i) of the IBC, 2016, states that the Adjudicating Authority shall admit the

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**Reasoning:** The Tribunal observed that the Corporate Debtor owed a sum exceeding Rs. 1.00 lakh to the

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

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**Application:** The Tribunal applied the provisions of Section 9(5)(i) of the IBC, 2016 to the

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## Parties

- **Judges:** R. VARADH…; DeepaKr…
- **Appellants:** Crayon Software…
- **Respondents:** Vas Data Services…

## Timeline

- **2015-11-18 — Purchase…**: The Corporate Debtor placed a purchase…
- **2015-12-01 — Purchase…**: The Corporate Debtor placed a purchase…

## 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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