The National Company Law Appellate Tribunal (NCLAT) has dismissed an appeal by Ramco Systems against Spicejet related to alleged non-payment of dues by the airline company for the software solutions it offered as per an agreement. The tribunal has allowed Ramco System to move before a court of competent jurisdiction for appropriate relief.
The NCLAT order comes on an appeal filed by Ramco against an order passed by the National Company Law Tribunal (NCLT), New Delhi, on December 14, 2017. The order had refused its application as an operational creditor under the Insolvency and Bankruptcy Code, 2016, against the airline company.
Ramco Systems and Spicejet entered into aviation software solutions agreements in May, 2013 and certain amendments were made in July, 2014. Ramco Systems alleged that huge amount is payable by the airline company and invoice for Rs 62.89 lakh were intimated to them on January, 2016. Spicejet argued that all claims are depended on invoices for the year 2013-14 and was due and payable by August, 2014 and they are barred by limitation.
It also argued that certain invoices for over Rs 90 lakh were both dated July, 2014 and had never been issued by Ramco to the company. The software company has also claimed an amount of Rs 1.42 crore for the unbilled license dated March, 2013, it added.
Upholding the NCLT order, the NCLAT bench comprising of Chairperson Justice S J Mukhopadhaya and Judicial Member Justice Bansi Lal Bhat, observed, that there is nothing on record to suggest that the invoices dated July 23, 2014 were forwarded or received by Spicejet Ltd.
“Therefore, the Demand Notice issued on April 24, 2017 as relates to invoice dated July 23, 2014, though it cannot be held to be barred by limitation, but in absence of specific evidence relating to invoices actually forwarded by the Appellant (Ramco Systems) and there being a doubt, we hold that the Adjudicating Authority (NCLAT) has rightly refused to entertain application under Section 9 which requires strict proof of debt and default,” said the Bench.
However, the order passed by the Appellate Tribunal or the NCLT will not come in the way of Ramco to move before the Court of Competent Jurisdiction for appropriate relief, said the Tribunal dismissing the appeal.
Earlier, the NCLT dismissed the application on the ground of inconsistency in the overall payments and the non-compliance with the relevant provisions in the absence of a certificate from the financial institution maintaining Ramco’s account. It further observed that Spicejet on the other hand shown that certain payment has been made. According to earlier reports, Ramco has filed application with the airlines for non-payment of operational debt to the tune of around Rs 4.87 crore.
