# In the matter of Sparsh Infratech Private Limited CP (IB) 810-MB-2020

> NCLT judgment dated 2023-02-03. Citation: TCN-2023-NCLT-04792. ID8 Media Solutions Private Limited filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 3 Feb 2023
- **Citation:** TCN-2023-NCLT-04792
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sparsh-infratech-private-limited-cp-ib-810-mb-2020-d0c39a0d

## Summary

### Background

ID8 Media Solutions Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Sparsh Infratech Private Limited, claiming a debt of Rs. 13,13,519/- as the principal amount and Rs. 1,44,355/- as interest. The Operational Creditor provided consultancy services to the Corporate Debtor as per an agreement dated 14.07.2017. The Corporate Debtor disputed the claim, alleging that there was a pre-existing dispute regarding the amount and the quality of services provided. The Corporate Debtor also claimed that the Operational Creditor was relying on proforma invoices and not tax invoices. The Corporate Debtor further contended that the agreement was terminated and that

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## Facts

ID8 Media Solutions Private Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Sparsh Infratech Private Limited (Corporate Debtor) for a debt of Rs. 13,13,519/- plus interest. The Operational Creditor provided consultancy services to the Corporate Debtor under an agreement dated 14.07.2017. The Operational Creditor raised 11 invoices and 3 vouchers between 01.02.2018 and 26.11.2018. The Corporate Debtor failed to pay the agreed fees. The Operational Creditor issued a demand notice dated 19.11.2019. The Corporate Debtor replied to the demand notice on 11.12.2019, disputing the claim. The Corporate Debtor claimed that there was a pre-existing dispute regarding the amount and the quality of services. The

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Operational Creditor and the Corporate Debtor …

**Ratio:** The existence of a pre-existing dispute, as defined under the IBC, bars the initiation of

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**Reasoning:** The NCLT relied on the case of Mobilox Innovations Private Limited vs. Kirusa Software

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**Interpretation:** The interpretation of 'pre-existing dispute' under the IBC requires a genuine

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**Application:** In this case, the Corporate Debtor had raised the issue of defects and

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** ID8 Media…
- **Respondents:** Sparsh Infratech…

## Timeline

- **2017-07-14 — Agreement…**: Agreement between ID8 Media Solutions Private Limited and Sparsh Infratech Private…
- **2018-02-01 — Invoice Perio…**: Start of the period for which invoices were…

## 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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