# In the matter of Bahula Infotech Private Limited C.P (IB) No. 197-KB-2021

> NCLT judgment dated 2022-04-18. Citation: TCN-2022-NCLT-03240. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 18 Apr 2022
- **Citation:** TCN-2022-NCLT-03240
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bahula-infotech-private-limited-cp-ib-no-197-kb-2021-12200b74

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Viom Infra Ventures Limited (Operational Creditor) against Bahula Infotech Private Limited (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed default on payments related to a Master Lease Agreement for equipment rental. The Corporate Debtor argued that there was a pre-existing dispute and that CIRP could not be initiated based on an Arbitral Award.

## Facts

Viom Infra Ventures Limited (Operational Creditor) filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Bahula Infotech Private Limited (Corporate Debtor). The Operational Creditor and Corporate Debtor entered into a Master Lease Agreement dated 09 July, 2018, where the Operational Creditor agreed to provide equipment to the Corporate Debtor on a monthly lease/rental basis. The Corporate Debtor started avoiding payments, leading the Operational Creditor to invoke the Arbitration Clause. The Arbitral Tribunal directed the Corporate Debtor to pay Rs.27,58,58,278/- to the Operational Creditor. The Corporate Debtor transferred Rs.15,92,78,600/-, leaving a balance of Rs.11,65,79,678/-. The Operational Creditor issued a demand notice

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## Issues and analysis

### Issue 1: Whether there is any pre-existing …

**Ratio:** In a Section 9 application, a key defense is the existence of a dispute or arbitration

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**Reasoning:** The court found that the Corporate Debtor had not brought any dispute to the notice of

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**Interpretation:** The existence of a genuine dispute prior to the issuance of a demand notice is

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**Application:** In this case, since the Corporate Debtor did not raise any dispute prior to the

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Viom Infra…
- **Respondents:** Bahula Infotech…
- **Advocates:** Shaunak…; Saurav…; +2 more

## Timeline

- **2018-07-09 — Master Lease A…**: A Master Lease Agreement was entered into between Viom Infra Ventures Limited and Bahula…
- **2018-10-30 — Reminder L…**: The Operational Creditor sent letters reminding the Corporate Debtor regarding lifting of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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