S&A Law Offices Secures Dismissal of Insolvency Petition Against ZTE Telecom India Private Limited Before Ld. NCLT Chandigarh
The full-service law firm with a significant presence in India, 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.
Order by the Tribunal
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.
Background and Dispute
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 S&A Law Offices team representing ZTE Telecom India Pvt. Ltd. was led by Ms. Daizy Chawla (Managing Partner), Mr. Jatin Kapoor (Partner – Designate), and Mr. Rahul K. Kanoujia (Senior Associate).
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