# In the matter of VXL Software Solutions Private Limited

> NCLT judgment dated 2025-02-26. Citation: TCN-2025-NCLT-00431. VSJ International Private Limited filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 26 Feb 2025
- **Citation:** TCN-2025-NCLT-00431
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vxl-software-solutions-private-limited-f57ca8cf

## Summary

### Background

VSJ International Private Limited filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against VXL Software Solutions Private Limited, alleging a default in repayment of debt amounting to Rs. 1,20,00,000/- from 10.07.2023. The petitioner issued a purchase order for thin clients, paid an advance, and later cancelled the order, seeking a refund of the advance amount.

## Facts

VSJ International Private Limited (Petitioner) issued a purchase order No. VSN/IND/12/004 dated 2022-03-25 for 400 thin clients at Rs. 20,500 each, totaling Rs. 96,76,000 including GST. The payment terms required the Petitioner to make a 50% advance payment upon invoice issuance. The Petitioner made an advance payment of Rs. 50,00,000 on 2022-03-25. The Petitioner issued multiple proforma invoices totaling Rs. 1,76,54,550. The Petitioner cancelled the purchase order on 2022-04-28 and requested a refund of Rs. 50,00,000. The Respondent refunded Rs. 30,00,000 on 2022-06-08. The Petitioner claimed a total outstanding amount of Rs. 1,20,00,000. The Petitioner issued a demand notice dated 2024-05-16, which was delivered on 2024-05-22, but received no reply. The Respondent

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## Issues and analysis

### Issue 1: Whether the advance payment made by the Petitioner for the purchase order qualifies as an …

**Ratio:** An 'operational debt' includes a debt arising from a contract in relation to the supply

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**Reasoning:** The court relied on the Supreme Court's judgment in M/s Consolidated Construction

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**Interpretation:** The term 'operational debt' is interpreted broadly to include debts arising

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**Application:** The advance payment made by the Petitioner for the supply of thin clients falls

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## Parties

- **Judges:** LAKSHMI G…; Shri. Charanjeet…
- **Appellants:** VSJ INTERNATIONAL…
- **Respondents:** VXL SOFTWARE…
- **Advocates:** KunalKa…; Tanushree…; +2 more

## Timeline

- **2022-03-25 — Purchase Orde…**: Petitioner issued Purchase order No.…
- **2022-03-25 — Advance P…**: Petitioner paid Rs. 50,00,000/- as…

## 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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