# In the matter of Simoco Telecommunications (South Asia) Limited I.A (IBC) No.1056-KB-2021 in C.P.(IB)No.834-2018

> NCLT judgment dated 2022-07-12. Citation: TCN-2022-NCLT-01759. The case involves an application filed by the Corporate Debtor, SIMOCO TELECOMMUNICATIONS…

- **Court:** NCLT
- **Order date:** 12 Jul 2022
- **Citation:** TCN-2022-NCLT-01759
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/simoco-telecommunications-south-asia-limited-ia-ibc-no1056-kb-2021-in-cpibno834-622228a1

## Summary

### Background

The case involves an application filed by the Corporate Debtor, SIMOCO TELECOMMUNICATIONS (SOUTH ASIA) LIMITED, seeking the recall of an order dated August 30, 2021. This order directed the Corporate Debtor to deposit the Indian Rupee equivalent of USD 621348.05 in a fixed deposit with the Tribunal's registry as a demonstration of bona fides, pending clearance from the Reserve Bank of India (RBI) for remitting the amount to the Operational Creditor, HYTERA COMMUNICATIONS CORPORATION LIMITED. The Corporate Debtor argued that the order was passed without its consent and exceeded the Adjudicating Authority's jurisdiction. The Corporate Debtor has been trying to obtain RBI approval for delayed foreign remittance against import invoices since 2019.

## Facts

HYTERA COMMUNICATIONS CORPORATION LIMITED (Operational Creditor) filed a case against SIMOCO TELECOMMUNICATIONS (SOUTH ASIA) LIMITED (Corporate Debtor) for unpaid dues of USD 621348.05. The Corporate Debtor admitted to the liability but faced difficulties in remitting the payment due to the requirement of RBI approval for delayed foreign remittances, stemming from import invoices dating back to 2012. The Adjudicating Authority initially ordered the Corporate Debtor to deposit the equivalent amount in Indian Rupees as a fixed deposit with the Tribunal's registry. The Corporate Debtor challenged this order, arguing it was made without consent and exceeded the Tribunal's jurisdiction. The Corporate Debtor had also filed a writ petition with the Calcutta High Court,

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order dated August 30, 2021, directing the Corporate Debtor to …

**Ratio:** An Adjudicating Authority, being a creature of statute, derives its power from the

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**Reasoning:** The Corporate Debtor argued that the order was passed without its consent and exceeded

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**Interpretation:** The Adjudicating Authority's power is limited by the statute that creates it.

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**Application:** The Adjudicating Authority ultimately modified the order, acknowledging the

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## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Respondents:** Simoco Telecommuni…
- **Advocates:** Rahul A…; Joy S…; +2 more

## Timeline

- **2021-08-30 — Order for Fixe…**: Adjudicating Authority directed the Corporate Debtor to keep Indian rupee equivalent of…
- **2021-08-05 — Representatio…**: Corporate Debtor made a representation to the Reserve Bank of India for permission for…

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