# In the matter of Sumtech Infosystem Private Limited

> NCLT judgment dated 2024-02-07. Citation: TCN-2024-NCLT-02722. Digizone Technology Private Limited, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 7 Feb 2024
- **Citation:** TCN-2024-NCLT-02722
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sumtech-infosystem-private-limited-ab59f09d

## Summary

### Background

Digizone Technology Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Sumtech Infosystem Private Limited, the Corporate Debtor. The Operational Creditor had supplied goods worth Rs. 2,89,44,913 to the Corporate Debtor, against which the Corporate Debtor made a partial payment of Rs. 19,49,229, leaving a balance of Rs. 2,69,95,684 due as of 27.03.2017. The Operational Creditor issued a demand notice on 14.09.2018, which was delivered on 18.09.2018. The Corporate Debtor acknowledged the debt but sought time for payment due to

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## Facts

Digizone Technology Private Limited (Operational Creditor) supplied goods to Sumtech Infosystem Private Limited (Corporate Debtor) based on invoices dated 24.02.2017 and 10.03.2017, totaling Rs. 2,89,44,913. The payment was due within 30 days of delivery. The Corporate Debtor made a partial payment of Rs. 19,49,229, leaving an outstanding balance of Rs. 2,69,95,684. The Operational Creditor issued a demand notice on 14.09.2018, delivered on 18.09.2018. The Corporate Debtor acknowledged the debt in a letter dated 24.09.2018, citing adverse financial conditions and requesting time for payment. The Operational Creditor supported its claim with bank statements and ledger accounts. The Corporate Debtor did not raise any dispute regarding the goods or invoices. The

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The Adjudicating Authority found that the application was complete, filed in the

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

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**Application:** The application was deemed maintainable because the Operational Creditor

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Digizone Technolog…
- **Respondents:** Sumtech Infosystem…
- **Advocates:** Arjun Sa…; Abdullah Q…

## Timeline

- **2017-02-24 — Invoice…**: Date of the first invoice for goods…
- **2017-03-10 — Invoice…**: Date of the second invoice for goods…

## 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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