# In the matter of Spartainfotech Solutions Pvt. Ltd. CP (IB) No.354-ALD-2018

> NCLT judgment dated 2022-05-23. Citation: TCN-2022-NCLT-02660. The case involves an application filed by Embee Software Pvt. Ltd. (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 23 May 2022
- **Citation:** TCN-2022-NCLT-02660
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spartainfotech-solutions-pvt-ltd-cp-ib-no354-ald-2018-6225f8df

## Summary

### Background

The case involves an application filed by Embee Software Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Spartainfotech Solutions Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for software and licenses supplied under an agreement. The Corporate Debtor contested the application, raising disputes regarding the amount due, the existence of a pre-existing dispute, and the validity of the demand notice.

## Facts

Embee Software Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Spartainfotech Solutions Pvt. Ltd. (Corporate Debtor) for initiating CIRP due to unpaid operational debt. The Corporate Debtor had placed a purchase order on 24.11.2015 for Microsoft products/services from the Operational Creditor, a reseller. An agreement effective from 25.02.2016 was entered into, under which the Operational Creditor was to supply software and licenses for three years to the Corporate Debtor, who would further supply them to approved Government institutions. Invoices were raised periodically from 21.03.2016 to 25.06.2018, based on actual usage, and acknowledged by the Corporate Debtor. The Corporate Debtor made

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The NCLT found that the application was complete and complied with all the requirements

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**Interpretation:** Section 9 provides the mechanism for operational creditors to initiate CIRP,

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**Application:** The NCLT determined that the application met all the necessary criteria under

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** Embee Software…
- **Respondents:** Spartainfotech…

## Timeline

- **2015-11-24 — Purchase…**: Corporate Debtor placed a purchase order on the Operational Creditor for Microsoft…
- **2016-02-25 — Agreement Ef…**: Agreement between the Operational Creditor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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