# In the matter of Actas Technologies Private Limited

> NCLT judgment dated 2023-09-04. Citation: TCN-2023-NCLT-01780. Kellton Tech Solutions Limited, the operational creditor, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 4 Sept 2023
- **Citation:** TCN-2023-NCLT-01780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/actas-technologies-private-limited-691cc93e

## Summary

### Background

Kellton Tech Solutions Limited, the operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Actas Technologies Private Limited, the corporate debtor, due to a default in payment of Rs. 1,82,36,619/-. The debt arose from a 'Software Development and Services Agreement' dated 17.09.2020, where Kellton Tech was to develop an e-wallet platform for Actas Technologies. The agreement was for Rs. 2,00,00,000/- plus GST. While Actas Technologies made timely payments for the first three invoices, they failed to fulfill payment obligations for the remaining two invoices.

## Facts

Kellton Tech Solutions Limited (Operational Creditor) and Actas Technologies Private Limited (Corporate Debtor) entered into a 'Software Development and Services Agreement' on 17.09.2020 for the development of an e-wallet platform for Rs. 2,00,00,000/- plus GST. Actas Technologies was to use the platform for their client THIMR AL ARABIYA. Kellton Tech developed the platform up to the 14th milestone, leading to five invoices. Actas Technologies paid the first three invoices but defaulted on the remaining two, totaling Rs. 1,75,82,000/-. Kellton Tech issued a demand notice on 08.10.2021. Actas Technologies replied, raising disputes. The key fact is the existence of a pre-existing dispute, evidenced by email communications starting 20.01.2021, where Actas Technologies

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## Issues and analysis

### Issue 1: Whether the operational debt was …

**Ratio:** The existence of a pre-existing dispute, as defined under the Insolvency and Bankruptcy

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**Reasoning:** The court found that the email communications between the parties, particularly the email

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**Interpretation:** The existence of a dispute must be genuine and not a mere attempt to avoid

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**Application:** In this case, the court found that the dispute regarding the quality of the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Kellton Tech…
- **Respondents:** Actas Technologies…

## Timeline

- **2020-09-17 — Agreement…**: Software Development and Services Agreement signed between Kellton Tech Solutions Limited…
- **2021-01-20 — First Di…**: Actas Technologies raised concerns about the quality and delivery of the software via…

## 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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