# In the matter of Nishan Systems Private Limited C.P (IB) No.1480-KB-2018

> NCLT judgment dated 2022-03-09. Citation: TCN-2022-NCLT-03828. M/s Global Infonet Distribution Private Limited, an operational creditor, filed an application…

- **Court:** NCLT
- **Order date:** 9 Mar 2022
- **Citation:** TCN-2022-NCLT-03828
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nishan-systems-private-limited-cp-ib-no1480-kb-2018-00f9d918

## Summary

### Background

M/s Global Infonet Distribution Private Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Nishan Systems Private Limited, the corporate debtor, seeking initiation of corporate insolvency resolution process. The operational creditor claimed that the corporate debtor defaulted on payments for computer software, SAP, and other software components supplied. The corporate debtor disputed the claim, asserting that payments had already been made, including adjustments for Marketing Development Funds (MDF) and TDS.

## Facts

M/s Global Infonet Distribution Private Limited (Operational Creditor) filed a petition against M/s Nishan Systems Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 12,79,433/-. The Operational Creditor supplied computer software, SAP, and other software components to the Corporate Debtor, raising invoices between August and December 2017. The Corporate Debtor claimed to have made payments, including adjustments for Marketing Development Funds (MDF) and TDS. The Corporate Debtor argued that the Operational Creditor's business development team acknowledged claims for MDF disbursement. The Operational Creditor sent a demand notice in Form-3 on August 7, 2018. The Corporate Debtor replied on August

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## Issues and analysis

### Issue 1: Whether the Operational Creditor's claim of Rs. 12,79,433/- is valid and outstanding against the …

**Ratio:** The principle that a corporate insolvency resolution process can only be initiated if

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**Reasoning:** The court found that the payments claimed by the Operational Creditor had already been

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**Interpretation:** The court interpreted the evidence to indicate that the Corporate Debtor had

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**Application:** Since the court found that the payments had already been made, the Operational

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Global Infonet…
- **Respondents:** Nishan Systems…
- **Advocates:** Yogendra Pal…; Rohit Kumar…; +1 more

## Timeline

- **2017-08-31 — Invoice…**: Operational Creditor raised invoice…
- **2017-08-31 — Invoice…**: Operational Creditor raised invoice…

## 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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