IN THE NATIONAL COMPANY LAW TRIBUNAL, COURT-I, MUMBAI BENCH Under Section 9 of the Insolvency and Bankruptcy Code, 2016 In the matter of Topsgroup Service (India) Limited CIN: U74920MH1982PLC027283 Having registered office at:

5, Royal Palms Golf & Country Club, Aarey Milk Colony, Goregaon (East), Mumbai – 400 065.

… Operational Creditor/Petitioner Vs M/s. Atos India Pvt. Ltd.

(CIN: U74140MH1983PTC030711)

Registered office at: 10^th floor, Tower- B, HCC-247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai – 400 083.

..…..Corporate Debtor Order delivered on: 01.11.2023 Coram:

Hon’ble Justice (Retd.) Sh. Virendrasingh Bisht, Member (Judicial)

Hon’ble Shri Prabhat Kumar, Member (Technical)

Appearance :-

For the Operational Creditor : Mr. Prakash Shinde, Learned Advocate i/b MDP & Partners For the Corporate Debtor : Mr. Naresh Thakur, Learned Advocate [Per: Justice (Retd.) V. G. Bisht, Member (J)]

1. This is an application filed by operational creditor/applicant under section 9 of the Insolvency &

Bankruptcy Code, 2016 (hereinafter referred as “IB Code” for short) against corporate debtor/respondent, for initiating corporate insolvency process (“CIRP” for short).

Brief facts:-

2. The Operational Creditor is a Company engaged in the business of providing security guarding services, security consultancy services, electronic security solutions etc. The Operational Creditor had provided security guarding services to the Corporate Debtor as per the requirement of the Corporate Debtor under the security service agreement (Annexure-A) dated 01.09.2016 and accordingly, raised monthly invoices. The invoices so raised contained a provision that payment should be released within 4 (four) days of the receipt of invoice failing which the Corporate Debtor was liable to pay an interest @ 24% p.a. and as per the agreement the Corporate Debtor was required to make payment within 45 days of submission of the invoices.

3. The aforesaid arrangement of Security services was discontinued and concluded vide discontinuation letter dated 02.04.2019 (Annexure-C) issued by Corporate Debtor. The Corporate Debtor also failed to make payment of the invoices generated by the Operational Creditor after 31.01.2019 upto 28.02.2019 amounting to Rs. 6,87,959/- and interest thereon. The Operational Creditor therefore issued a notice dated 25.05.2019 (Annexure-E) but Corporate Debtor refused to clear the outstanding dues. Thereafter, the Operational Creditor issued a demand notice dated 26.06.2019 under Section 8 of the Insolvency and Bankruptcy code, 2016 under Form 3 thereby demanding the total outstanding payment but again the Corporate Debtor failed and neglected to comply with the said notices. Therefore, the present petition for initiation of Corporate Insolvency Resolution Process.

4. The Corporate Debtor, on the other hand, resisted the claim by filing affidavit in reply and contended that the dispute exists in relation to the purported claim which commenced as early as November, 2018 i.e. prior to the receipt of the notice of demand. According to the Corporate Debtor, under the security service agreement dated 01.09.2016 and more particularly in the light of (clause 2), the Operational Creditor was responsible for payment of all wages of guards and contributions to provident funds. However, as it committed default, the Corporate Debtor was constrained to make payment to the said guards on receipt of notice/s from Labour Commissioners and other authorities. Although the purported claim of the Operational Creditor is Rs. 7,33,874/- but the Corporate Debtor has made payment of Rs. 9,70,062/- and thus the Corporate Debtor has claim of Rs. 2,36,188/- against the Operational Creditor.

5. The Corporate Debtor next contends that there are no amounts which are due from it and as an afterthought and counterblast to the termination of the agreement by it, the Operational Creditor issued a purported notice dated 25.05.2019 and subsequently under Form 3 dated 26.06.2019. Conseque