# In the matter of Simoco Telecommunications (South Asia) Limited C.P (IB) No.834-KB-2018

> NCLT judgment dated 2022-07-12. Citation: TCN-2022-NCLT-01760. Hytera Communications Corporation Limited, an operational creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 12 Jul 2022
- **Citation:** TCN-2022-NCLT-01760
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/simoco-telecommunications-south-asia-limited-cp-ib-no834-kb-2018-68e870ff

## Summary

### Background

Hytera Communications Corporation Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Simoco Telecommunications (South Asia) Limited, the corporate debtor, seeking initiation of the corporate insolvency resolution process (CIRP). The application was based on unpaid invoices for goods supplied by the operational creditor to the corporate debtor. The corporate debtor acknowledged the debt but cited financial difficulties and the need for Reserve Bank of India (RBI) approval for foreign remittances as reasons for non-payment. Several settlement attempts were made, but the corporate debtor failed to adhere to the agreed payment schedules. The operational creditor argued that the corporate debtor's

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## Facts

Hytera Communications Corporation Limited (Operational Creditor) supplied telecommunication products and accessories to Simoco Telecommunications (South Asia) Limited (Corporate Debtor) based on several purchase orders. The Corporate Debtor failed to make full payment for the supplied goods, resulting in outstanding invoices. The Operational Creditor raised invoices totaling USD 1,441,490.78, which remained unpaid despite part payments. The Corporate Debtor issued a guarantee letter dated December 31, 2013, promising to pay the outstanding amount by April 15, 2014, but failed to adhere to this promise. The parties held meetings and agreed on revised repayment schedules, but the Corporate Debtor failed to make full payments. The Corporate Debtor acknowledged the

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## Issues and analysis

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

**Ratio:** The principle is that a default occurs when a debt is due and payable but has not been

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**Reasoning:** The court acknowledged that the Corporate Debtor had admitted to the outstanding debt

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**Interpretation:** The interpretation of 'default' in the context of the IBC requires

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**Application:** In this case, while the debt was acknowledged, the court found that the

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Hytera Communicati…
- **Respondents:** Simoco Telecommuni…

## Timeline

- **2012-04-26 — Purchase…**: Purchase Order bearing…
- **2012-12-06 — Purchase…**: Purchase Order bearing…

## 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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