# In the matter of Cafe Coffee Global Limited

> NCLT judgment dated 2022-06-23. Citation: TCN-2022-NCLT-02087. First Walkin Technologies Pvt. Ltd., the operational creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 23 Jun 2022
- **Citation:** TCN-2022-NCLT-02087
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cafe-coffee-global-limited-a2c29989

## Summary

### Background

First Walkin Technologies Pvt. Ltd., the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global Limited, the corporate debtor, due to unpaid operational debt. The corporate debtor was intending to launch a digital application called the 'CCD Mobile App' and engaged the services of Fourthlion Technologies Private Limited, later assigned to First Walkin Technologies Pvt. Ltd. The operational creditor raised invoices for services rendered, but the corporate debtor disputed the amount, citing a suspension on CIRP initiation for defaults arising after March 25th. The operational creditor issued demand notices, which the corporate debtor responded

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## Facts

First Walkin Technologies Pvt. Ltd. filed a petition to initiate CIRP against Coffee Day Global Limited for an unpaid operational debt of Rs. 1,75,73,690/-. The debt arose from services rendered by First Walkin Technologies, as the assignee of Fourthlion Technologies, for the development of a 'CCD Mobile App'. The Corporate Debtor acknowledged the debt via email communications in March 2020. However, the Corporate Debtor disputed the debt, citing deficiencies in the services and an ongoing commercial suit. The Corporate Debtor issued a notice of dispute in response to the Operational Creditor's demand notice. The Corporate Debtor had paid approximately INR 22,32,51,791/- to the Petitioner and Fourthlion for the development of the CCD Mobile App. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether there is existence of a dispute between the …

**Ratio:** The existence of a pre-existing dispute is a bar to the admission of an application under

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**Reasoning:** The court reasoned that the Respondent/Corporate Debtor was able to show that there were

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**Interpretation:** The court interpreted the documentary evidence, including email communications

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Appellants:** First Walkin…
- **Respondents:** Coffee Day Global…

## Timeline

- **2016-05-05 — Agreement for Digital Application Development…**: Agreement executed between the Corporate Debtor and Fourthlion Technologies Private…
- **2018-06-04 — Addendum to the…**: Addendum executed to the Digital Application Development Services Agreement between the…

## 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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