Software company's petition for unpaid invoices rejected due to debtor's dispute under Insolvency and Bankruptcy Code.

The Operational Creditor Petition filed by a software company against a Debtor Company for non-payment of invoices related to services provided for a tele-voting campaign was rejected by the Tribunal. The Debtor disputed the claim, and the notice of dispute was acknowledged, rendering the claim inadmissible under the Insolvency and Bankruptcy Code. The Petitioner's claim for unpaid invoices, along with interest, was deemed invalid due to the dispute raised by the Debtor, leading to the rejection of the Petition.

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Issues: Operational Creditor Petition for unpaid invoices.

Detailed Analysis:
1. Claim by the Petitioner: The Petitioner, a software company, filed an Operational Creditor Petition against the Debtor Company for non-payment of invoices totaling &8377; 20,08,202 along with interest at 18% p.a. The invoices were for services provided in relation to a tele-voting campaign for a dance reality show on Star TV, as per Purchase Orders issued by the Debtor.

2. Services Rendered: The Petitioner developed a software application for tele-voting through toll-numbers based on the POs issued by the Debtor. Monthly invoices were raised for the usage generated by the campaign, including toll-free numbers rentals and Primary Rate Interface Rental, which remained outstanding and payable by the Debtor.

3. Dispute Raised by Debtor: The Debtor disputed the claim made by the Petitioner by filing a notice of dispute as required under Section 9 of the Insolvency & Bankruptcy Code. The notice of dispute dated 27.12.2016 was received by the Petitioner, indicating a disagreement regarding the debt allegedly owed.

4. Legal Analysis: The Bench considered the notice of dispute and the fact that the Debtor contested the claim raised by the Petitioner. As per Section 9(5)(ii)(d) of the Insolvency and Bankruptcy Code, since the default payment was disputed by the Debtor and the notice of dispute was acknowledged by the Petitioner, the claim made by the Petitioner was deemed inadmissible. Consequently, the Petition was rejected by the Tribunal.

This detailed analysis of the judgment outlines the key aspects of the case, including the nature of the claim, services provided, dispute raised by the Debtor, and the legal interpretation leading to the rejection of the Petition.

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