2019 (10) TMI 1268

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r Products Private Limited, the Operational Creditor / Applicant, under section 9 of Insolvency & Bankruptcy Code, 2016 (I&B Code) against Play Games 24x7 Private Limited, Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). 2. The Application is filed by Mr Amit Vora, CEO, of the Operational Creditor, claiming a total default of Rs.6,35,13,977/- (Rupees Six Crore Thirty Five Lakh Thirteen Thousand Nine Hundred and Seventy Seven Only). 3. The Applicant submitted that it supplied digital marketing and advertising services to the Corporate Debtor as per the Contract dated 09.07.2018 entered into between the Applicant and Corporate Debtor. The copy of the said Contract is annexed to the Application. 4. The ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ds outstanding invoice amount. It is submitted that the Corporate Debtor replied to the Demand Notice vide its letter dated 15.04.2019 and raised disputes with regards to unauthorised use of brand keywords by the Applicant and charging of higher fees by intentional reporting of incorrect geographical locations of leads. The Corporate Debtor submitted that the Applicant breached the representations and warranties under clause 4(a) of the Contract dated 09.07.2018. The copy of demand notice and reply is annexed to the Application. 7. Before proceeding further, it is pertinent to note that, prior to the demand notice being issued by the Applicant, the Corporate Debtor served a legal notice dated 23.03.2019, in relation to Advertising Agreem....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rused the records. 10. In the facts and circumstances of the present case, it is pertinent to note the judgment of Hon'ble Supreme Court in "Mobilox Innovations Private Limited vs Kirusa Software Private Limited (AIR 2017 SC 4532)" regarding the pre-existence of dispute in section 9 application. The relevant portion of the said judgment is reproduced below: "The scheme Under Sections 8 and 9 of the Code, appears to be that an operational creditor, as defined, may, on the occurrence of a default (i.e., on non-payment of a debt, any part whereof has become due and payable and has not been repaid), deliver a demand notice of such unpaid operational debt or deliver the copy of an invoice demanding payment of such amount to the corpo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....anding payments to the Applicant under the Advertising Agreement. Further, the Corporate Debtor also replied to the Demand Notice within the statutory period of 10 days and disputed the unauthorised use of brand keywords and reporting of incorrect geographical locations of leads by the Applicant. The Disputes raised by the Corporate Debtor and collusion of Applicant with employees of Corporate Debtor is also evident from the forensic investigation report annexed by the Corporate Debtor. Thus, the contention of the Corporate Debtor that Applicant breached the representations and warranties under clause 4(a) of the Contract dated 09.07.2018 amounts to pre-existing dispute. 13. Therefore, in view of the facts and circumstances of the presen....