# In the matter of ITSource Technologies Limited

> NCLT judgment dated 2024-09-06. Citation: TCN-2024-NCLT-00649. Rutu Computer Services filed a Company Petition on 2024-02-21 under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 6 Sept 2024
- **Citation:** TCN-2024-NCLT-00649
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/itsource-technologies-limited-7c4b736b

## Summary

### Background

Rutu Computer Services filed a Company Petition on 2024-02-21 under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against ITSource Technologies Limited, claiming an operational debt of Rs. 1,06,52,517/- with a default date of 2023-10-25. Rutu Computer Services, engaged in manufacturing and retail sale of computers and peripherals, claimed that ITSource Technologies Limited, the corporate debtor, failed to pay for goods supplied despite repeated requests and reminders. The corporate debtor acknowledged placing orders and receiving goods but cited financial difficulties due to unforeseen circumstances, particularly the Covid-19 pandemic, leading to an NPA account in May 2024.

## Facts

Rutu Computer Services, the Operational Creditor, is in the business of manufacturing and retail sale of computers and computer peripherals. ITSource Technologies Limited, the Corporate Debtor, placed orders for computer peripherals to be delivered to their site in Andheri East, Mumbai. Goods were sold and supplied to the Corporate Debtor from 2021 onwards. Invoices were raised, totaling Rs. 2,95,50,243/-. Despite payments made by the Corporate Debtor, an amount of Rs. 1,06,52,517/- remained outstanding. The date of default is 2023-10-25. The Operational Creditor followed up with the Corporate Debtor through phone calls, meetings, and emails. An email dated 2024-01-11 informed the Corporate Debtor of the non-payment. A demand notice was issued on 2024-01-25 and

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The NCLT found that the Operational Creditor had provided sufficient evidence to

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The NCLT applied Section 9 to the facts, noting that Rutu Computer Services was

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Rutu Computer…
- **Respondents:** ITSource Technolog…

## Timeline

- **2023-10-25 — Date of D…**: The date on which the Corporate Debtor defaulted on its payment obligations to the…
- **2024-01-11 — Email Regarding…**: The officer of the Operational Creditor informed the Corporate Debtor via email regarding…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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