# In the matter of Karvy Next Limited

> NCLT judgment dated 2023-07-18. Citation: TCN-2023-NCLT-02476. Novho Careers Private Limited, the Operational Creditor (OC), filed an application against…

- **Court:** NCLT
- **Order date:** 18 Jul 2023
- **Citation:** TCN-2023-NCLT-02476
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/karvy-next-limited-fc9615eb

## Summary

### Background

Novho Careers Private Limited, the Operational Creditor (OC), filed an application against Karvy Next Limited, the Corporate Debtor (CD), seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to default in payment for logistics services provided by the OC. The OC claimed that the CD availed logistics services as per a Master Service Agreement dated 2019-06-01, and raised invoices for the services. The CD allegedly failed to pay the outstanding dues, despite reminders and legal notices. The OC claimed a total due of Rs. 1,84,74,762, including interest.

## Facts

Novho Careers Private Limited (Operational Creditor) provided logistics services to Karvy Next Limited (Corporate Debtor) under a Master Service Agreement dated 2019-06-01. The Operational Creditor raised invoices for these services. The Corporate Debtor failed to make payments, leading to outstanding dues. The Operational Creditor sent reminders and legal notices, including a demand notice dated 2021-07-13. The Corporate Debtor acknowledged the debt in some emails and in a reply to a legal notice dated 2020-12-28, promising to pay by 2021-02-28. The Operational Creditor claimed a total due of Rs. 1,84,74,762, including interest of Rs. 28,18,184. The Corporate Debtor denied the debt and argued that the application was barred under Section 10A of the IBC, as the default

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## Issues and analysis

### Issue 1: Whether the application to initiate CIRP is barred by Section 10A of the IBC, 2016, considering the …

**Ratio:** Section 10A of the IBC, 2016, prohibits the initiation of CIRP for defaults occurring

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**Reasoning:** The court considered the dates of the invoices and the default, noting that some invoices

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**Interpretation:** Section 10A provides a bar on initiating CIRP for defaults occurring during the

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**Application:** The court applied Section 10A to the facts, excluding invoices dated

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## Parties

- **Judges:** TELAPROLU…; Shri. Chara…
- **Appellants:** Novho Careers Pvt…
- **Respondents:** Karvy Nex…

## Timeline

- **2019-06-01 — Master Service…**: The Corporate Debtor (CD) and Operational Creditor (OC) entered into a Master Service…
- **2020-03-07 — Invoice…**: Date of one of the invoices claimed…

## 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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