# In the matter of Rao Edusolutions Pvt. Ltd. C.P. 627-IB-MB-2020

> NCLT judgment dated 2023-07-03. Citation: TCN-2023-NCLT-02731. The case involves a company petition filed by Siddhesh Bhalchandra Naik (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 3 Jul 2023
- **Citation:** TCN-2023-NCLT-02731
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rao-edusolutions-pvt-ltd-cp-627-ib-mb-2020-75477580

## Summary

### Background

The case involves a company petition filed by Siddhesh Bhalchandra Naik (Operational Creditor) against M/s. Rao Edusolutions Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging a default of Rs. 23,74,133/-. The Operational Creditor provided consultancy services to the Corporate Debtor under a service agreement. Disputes arose regarding the payment of dues, leading to the filing of the petition to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor denied the allegations and claimed breach of contract by the Operational Creditor.

## Facts

Siddhesh Bhalchandra Naik (Operational Creditor) filed a petition against M/s. Rao Edusolutions Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 23,74,133/-. The Operational Creditor provided consultancy services to the Corporate Debtor as a 'Consultant of Mathematics' under a service agreement dated 06.12.2017, for a term of three years from 01.04.2017 to 31.03.2020. The Operational Creditor submitted bills for monthly professional fees, including GST. While some payments were made, delays and non-payment of GST amounts occurred. The Operational Creditor resigned on 11.04.2019, which was accepted by the Corporate Debtor. The Corporate Debtor promised to clear all outstanding dues within 90 days of the

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in the payment of operational debt to the …

**Ratio:** A default occurs when a debt is due and payable and has not been paid by the debtor. The

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**Reasoning:** The court found that the Corporate Debtor had not specifically denied the factum of

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**Interpretation:** The court interpreted the lack of specific denial of non-payment as an

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**Application:** The court applied the ratio to the facts of the case, noting that the Corporate

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** Siddesh Bhalchandr…
- **Respondents:** M/s. Rao Edusoluti…

## Timeline

- **2017-04-01 — Service Agreement Start…**: Service agreement between Operational…
- **2017-12-06 — Service Agreement…**: Service agreement executed between…

## 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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