# In the matter of Cafe Coffee Global Limited

> NCLT judgment dated 2022-06-23. Citation: TCN-2022-NCLT-02089. First Walkin Technologies Pvt., Ltd. filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 23 Jun 2022
- **Citation:** TCN-2022-NCLT-02089
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cafe-coffee-global-limited-ced1c9f1

## Summary

### Background

First Walkin Technologies Pvt., Ltd. filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global Limited, claiming a default of Rs. 1,75,73,690/-. The Corporate Debtor, Coffee Day Global Limited, intended to launch a digital application called 'CCD Mobile App' and engaged Fourthlion Technologies Private Limited, later assigned to First Walkin Technologies. The Operational Creditor raised invoices for services rendered, but disputes arose regarding the quality of services and payments. The Corporate Debtor disputed the amount, citing deficiencies in services and a pre-existing dispute. The Commercial Court, Bengaluru, is already hearing a suit filed by Coffee

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## Facts

First Walkin Technologies Pvt., Ltd. (Operational Creditor) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Coffee Day Global Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The claim was for Rs. 1,75,73,690/-. Coffee Day Global Limited intended to launch a digital application called 'CCD Mobile App' and engaged Fourthlion Technologies Private Limited, later assigned to First Walkin Technologies. An agreement for Digital Application Development Services was executed on 05.05.2016, with an addendum on 04.06.2018. First Walkin Technologies raised 12 invoices between 04.02.2019 and 10.02.2020. Coffee Day Global acknowledged the debt via email on 19.03.2020 and 27.03.2020. A demand notice was

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## Issues and analysis

### Issue 1: Whether there is existence of a dispute between the parties prior to the issuance of the demand …

**Ratio:** The existence of a pre-existing dispute is a valid ground for rejecting an application

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**Reasoning:** The Adjudicating Authority relied on the Corporate Debtor's reply to the demand notice

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**Interpretation:** The court interpreted the email communications and reconciliation statements as

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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…
- **Advocates:** Pramod K…; Dhwani N…; +3 more

## Timeline

- **2016-05-05 — Agreement for Digital Application Development…**: Agreement executed between Coffee Day Global Limited and Fourthlion Technologies Private…
- **2018-06-04 — Addendum to the…**: Addendum executed between Coffee Day Global…

## 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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