# Mobilox Innovations Private Limited Vs. Kirusa Software Private Limited Civil Appeal No. 9405-2017.

> SC judgment dated 2017-09-21. Citation: TCN-2017-SC-00012. The case involves an appeal regarding the triggering of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** SC
- **Order date:** 21 Sept 2017
- **Citation:** TCN-2017-SC-00012
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/mobilox-innovations-private-limited-vs-kirusa-software-private-limited-civil-app-95797967

## Summary

### Background

The case involves an appeal regarding the triggering of the Insolvency and Bankruptcy Code, 2016, concerning operational debts owed to operational creditors. Mobilox Innovations Private Limited (appellant) engaged Kirusa Software Private Limited (respondent) to provide toll-free telephone numbers for Star TV's 'Nach Baliye' program. Kirusa provided the services and raised invoices, but Mobilox withheld payments, claiming Kirusa breached a non-disclosure agreement (NDA) by disclosing their work for the program. Kirusa then issued a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, seeking payment of Rs.20,08,202.55. Mobilox responded, citing a dispute due to the NDA breach. Kirusa filed an application before the National Company Law Tribunal

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## Facts

Mobilox Innovations Private Limited engaged Kirusa Software Private Limited to provide toll-free telephone numbers for Star TV's 'Nach Baliye' program. Kirusa provided services and raised invoices between December 2013 and November 2014. A non-disclosure agreement (NDA) was executed between the parties on December 26, 2014, effective from November 1, 2013. On January 30, 2015, Mobilox informed Kirusa that payments were being withheld because Kirusa had disclosed their work for 'Nach Baliye' on their webpage, breaching the NDA. Kirusa denied the breach on February 10, 2015, and demanded payment. Correspondence continued, and on December 23, 2016, Kirusa issued a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, for Rs.20,08,202.55. Mobilox

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## Issues and analysis

### Issue 1: Whether a genuine dispute existed between Mobilox Innovations Private Limited and Kirusa Software …

**Ratio:** The existence of a real dispute, not a patently feeble legal argument or an assertion of

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**Reasoning:** The Supreme Court found that the correspondence between the parties demonstrated a clear

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**Interpretation:** The term 'dispute' under Section 5(6) of the Insolvency and Bankruptcy Code,

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**Application:** The court applied the ratio to the facts, finding that Mobilox had raised a

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## Parties

- **Judges:** ROHINTON FALI…; SANJAY KISH…
- **Appellants:** Mobilox Innovation…
- **Respondents:** Kirusa Software…
- **Other parties:** 7th Edition…; Star…; +13 more

## Timeline

- **2013-11-01 — NDA Effecti…**: Non-disclosure agreement (NDA) between Mobilox Innovations Private Limited and Kirusa…
- **2014-12-26 — NDA Executi…**: Non-disclosure agreement (NDA) is executed between Mobilox Innovations Private Limited…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(6) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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