# In the matter of Aurangabad City Water Utility Company Limited CP (IB) 1848-MB-C-I-2019

> NCLT judgment dated 2023-06-16. Citation: TCN-2023-NCLT-02884. Bsmart Tech Private Limited, the Operational Creditor/Petitioner, filed a Company Petition…

- **Court:** NCLT
- **Order date:** 16 Jun 2023
- **Citation:** TCN-2023-NCLT-02884
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aurangabad-city-water-utility-company-limited-cp-ib-1848-mb-c-i-2019-02fd19e3

## Summary

### Background

Bsmart Tech Private Limited, the Operational Creditor/Petitioner, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Aurangabad City Water Utility Company Limited, the Corporate Debtor/Respondent. The Respondent was incorporated on 25.06.2011. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for bulk SMS services provided. The total outstanding amount alleged to be in default is Rs. 10,07,375 along with interest at 12% p.a. The date of default is 02.08.2015.

## Facts

Bsmart Tech Private Limited (Operational Creditor) filed a petition under Section 9 of the IBC to initiate CIRP against Aurangabad City Water Utility Company Limited (Corporate Debtor) for non-payment of dues related to bulk SMS services. The Operational Creditor claimed a default of Rs. 10,07,375 with interest, with the default date being 02.08.2015. The Corporate Debtor argued that a pre-existing dispute existed regarding the SMS counts and service deficiency, supported by emails exchanged between 25.11.2015 and 29.01.2016, prior to the Demand Notice issued on 05.12.2018. The last payment made by the Respondent was on 27.04.2015 for Rs.7,844.13/-. The Operational Creditor issued a Demand Notice dated 05.12.2018 under Section 8 of the Code, which was delivered on

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Operational Creditor and the Corporate Debtor …

**Ratio:** The legal principle is that under Section 9 of the IBC, an application for initiation of

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**Reasoning:** The Adjudicating Authority reasoned that the emails exchanged between the parties from

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**Interpretation:** The interpretation of 'pre-existing dispute' is that it must be a dispute that

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**Application:** In this case, the court applied the principle by examining the emails and

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## Parties

- **Judges:** H.V. Subb…; Anu Jagmoha…
- **Appellants:** Bsmart Tech…
- **Respondents:** Aurangabad City…
- **Advocates:** Nihal S…; Sidharth…

## Timeline

- **2011-06-25 — Incorporation of…**: Aurangabad City Water Utility…
- **2015-04-27 — Last Pay…**: Last payment made to Petitioner by…

## 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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