# In the matter of Hogar Controls India Pvt. Ltd.

> NCLT judgment dated 2024-02-16. Citation: TCN-2024-NCLT-02551. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Feb 2024
- **Citation:** TCN-2024-NCLT-02551
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hogar-controls-india-pvt-ltd-8492a731

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Lumi Vietnam Joint Stock Company (Operational Creditor) against Hogar Controls India Pvt. Ltd (Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted in making payment of Rs. 4,73,79,933/- for software programs delivered. The Corporate Debtor disputed the debt, alleging quality issues with the software and claiming a pre-existing dispute.

## Facts

Lumi Vietnam Joint Stock Company (Operational Creditor) filed a petition against Hogar Controls India Pvt. Ltd (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 4,73,79,933/-. The Operational Creditor, a software developer, alleged that the Corporate Debtor had placed an order on 2017-10-12 for software programs for INR 5,38,20,053/- and that the software was delivered between 2018 and 2021. Five commercial invoices were raised between 2018-05-17 and 2021-04-26. The Corporate Debtor made a partial payment of USD 30,000 (INR 22,09,923/-). The Corporate Debtor disputed the debt, claiming the software was not originally developed by the Operational Creditor and alleging quality issues. The Corporate Debtor claimed

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## Issues and analysis

### Issue 1: Whether an ‘Operational Debt' of a sum exceeding rupees one crore, due and payable by the …

**Ratio:** The principle that a person cannot be allowed to have the benefit of an instrument while

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**Reasoning:** The court found that the Corporate Debtor had accepted the delivery of the software,

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**Interpretation:** The principle of estoppel prevents a party from benefiting from an agreement

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**Application:** The Corporate Debtor's conduct of accepting the software, making partial

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** Lumi Vietn…
- **Respondents:** Hogar Controls…; M/s Hogar…

## Timeline

- **2017-10-12 — Order Pla…**: Corporate Debtor placed an order for…
- **2018-05-17 — First In…**: Operational Creditor raised…

## 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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