S&A Law Offices successfully represented ZTE Telecom India Pvt. Ltd. before the Ld. National Company Law Tribunal (Ld. NCLT), Chandigarh Bench (Court-II) in CP (IB) No. 168/Chd/Hry/2019. The petition was filed by TVS Supply Chain Solutions Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process against ZTE for an alleged operational debt of Rs. 4.27 crore plus interest.
After detailed hearings and extensive submissions by both the parties, the Ld. NCLT, by its order dated October 9, 2025, dismissed the petition. The Tribunal held that there existed a clear and demonstrable pre-existing dispute between the parties well before the issuance of the statutory demand notice under Section 8 of the Code. It relied on the Supreme Court's ruling in Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd. [(2018) 1 SCC 353] and reiterated that the IBC cannot be invoked as a debt recovery mechanism where genuine disputes exist.
The order noted that the matter involved multiple reconciliations, audit objections, and communications dating back to 2017, which established the existence of a bona fide dispute. Consequently, the petition was held not maintainable under Section 9 of the IBC, 2016. This decision reinforces the principle that insolvency proceedings cannot be misused for recovery of disputed claims.
The matter was led by Ms. Daizy Chawla (Managing Partner), Mr. Jatin Kapoor (Partner - Designate), and Mr. Rahul K. Kanoujia (Senior Associate) at S&A Law Offices.
TVS Supply Chain Solutions Limited v ZTE Telecom India Private Limited