# In the matter of SNS Laboratories Limited CP (IB) No. 531-Chd-Hry-2019

> NCLT judgment dated 2022-08-11. Citation: TCN-2022-NCLT-01389. Redhex IT Solutions Private Limited, the operational creditor, filed a petition under Section 9…

- **Court:** NCLT
- **Order date:** 11 Aug 2022
- **Citation:** TCN-2022-NCLT-01389
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sns-laboratories-limited-cp-ib-no-531-chd-hry-2019-60a5d30c

## Summary

### Background

Redhex IT Solutions Private Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against SNS Laboratories Limited, the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor defaulted on a payment of Rs. 6,49,000/- (inclusive of interest) for the supply of payroll software. The default occurred on 16.06.2019. The Adjudicating Authority issued a notice to the corporate debtor to show cause why the petition should not be admitted.

## Facts

Redhex IT Solutions Private Limited (Operational Creditor) supplied payroll software to SNS Laboratories Limited (Corporate Debtor). Invoices were raised and duly received. The Corporate Debtor defaulted on a payment of Rs. 6,49,000/-, inclusive of 12% interest p.a., with the default occurring on 16.06.2019. The Operational Creditor issued a demand notice on 29.10.2019, which was duly served. The Corporate Debtor did not reply to the demand notice. The Corporate Debtor admitted the debt but claimed financial unviability. The application was filed on 01.10.2019. The debt and default were above the threshold limit of one lakh rupees (prior to the amendment). The Corporate Debtor failed to make payment of the amount due as mentioned in the statutory notice.

## Issues and analysis

### Issue 1: Whether the demand notice in Form 4 …

**Ratio:** A demand notice is considered duly served if it is delivered to the corporate debtor and

…

**Reasoning:** The tracking report mentioned at Annexure-F of the main petition confirmed that the

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**Interpretation:** The court interpreted the tracking report as evidence of proper service of the

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**Application:** Since the tracking report showed delivery, the court held that the demand

…

## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Redhex IT…
- **Respondents:** SNS Laboratories…

## Timeline

- **1985-09-18 — Incorporation of…**: SNS Laboratories Limited was…
- **2019-06-16 — Date of D…**: The Corporate Debtor defaulted on a payment of…

## 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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