The court ruled that a pre-existing dispute negates operational creditor status under the IBC, reaffirming that suppression of material facts impacts a petition's legitimacy.

Per Coram:

1. The present petition has been filed by M/s. Valiant Cinque Private Limited (hereinafter referred to as ’Petitioner’/ ’Operational Creditor’) on 24.01.2024, u/s 9 of the Insolvency and Bankruptcy Code , 2016 (’The Code’), r/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 ("AA Rules"), for initiating Corporate Insolvency Resolution Process (CIRP), declaring moratorium and for appointment of Interim Resolution Professional (IRP), against M/s. RoadE Labs Private Limited (hereinafter referred to as ’Respondent’/Corporate Debtor’) for default of Rs. 1,42,71,294.06/- (Rupees One Crore Forty-Two Lakh Seventy-One Thousand Two Hundred Ninety-Four and Six Paise only) on account of “software services” rendered to the Respondent.

Brief facts as mentioned in the Petition are as under:

2. The Petitioner herein is a private limited company incorporated on 10.09.2021 under the provisions of the Companies Act , 1956 with CIN No. U72200TG2021PTC154829, having its registered address at H. No 1-98/5/2A., Sy. No. 85 Spacion Tower, Serilingampally, Vittal Rao Nagar, Madhapur, Hyderabad, Rangareddi, Telengana, India -500 081, having Mr. Saquib Quamar Ansari, Ms. Liz Thomas, Mr. Gautam Cheruvu, Mr. Mohammed Sohail Akhtar Ansari and Mr. Srinivasa Ravikanth Challa as its Directors/Promotors. All the promoters were ex-IBM employees with IT background having no knowledge of the Companies Act , rules and its day-to-day administration.

3. The incorporation objectives encompass a broad spectrPuemti tioofn earc’stivities within the information technology sector. These include designing, developing, testing, deploying, and customizing software applications spanning web and mobile platforms along with implementing— business analytics, predictive analytics, —machine learning, and AI solutions. The company also aims to engage in the import, export, sale, purchase, trading, production, distribution, and customization of various software products, applications, and related services. Additionally, it plans to establish, promote and support consulting services, such as IT consulting, training programs, placement services, content and data services, publishing, web services, technology process outsourcing, transcription, back-office operations, and maintenance of information systems.

4. The authorized capital of the company of the Petitioner as per the Company Master Data is Rs. 10,00,000/- and paid-up capital is Rs. 1,00,000/-.

5. The Corporate Debtor is a Company incorporated on 19.12.2017 under the provisions of the Companies Act , 1956 with CIN No. U72900KL2017PTC051450 with its registered office at 27/2088, 2nd Floor, Adam Star Building, Mavelipuram Zone 2, Kakkanad, Ernakulam, Kerala, India, 682030. Hence, the territorial jurisdiction lies with this Adjudicating Authority. Copy of master data of the corporate debtor is attached with the main petition.

6. The authorized capital of the Corporate Debtor as per the master data is Rs. 1,00,000/- and paid-up capital is Rs. 1,00,000/-.

7. As per Form 5 PartIII, Petitionerhas proposed CA Mr. Rakesh Mohan Bagri having Registration No. IBBI/IPA-001/IP-P00246/2017- 18/10475 as the Insolvency Professional. The Form 2 consent letter of the proposed Insolvency Professional is annexed along with the main petition.

8. As per Form 5 Part IV, it is alleged that a total amount of Rs. 1,42,71,294.06/- (Rupees One Crore Forty-Two Lakh Seventy-One Thousand Two Hundred Ninety-Four and Six Paise only) is due against the respondent and there exists no security interest/charge in favour of the Petitioner and the debts have arisen u