Mobilox Innovations Pvt.Ltd. Vs. Kirusa Software Pvt Ltd. (Civil Appeal No. 9405 of 2017) - Synopsis
Team SoOLEGAL 15 Oct 2020

In this particular case, Mobilox Innovations Pvt.Ltd. Vs. Kirusa Software Pvt Ltd. (Civil Appeal No. 9405 of 2017), the petitioner company was conducting a telephonic voting session on behalf of an entertainment program known as “Nach Baliye”. For this voting session, the petitioner company had made a contract with the respondent company that is Kirusa Software Private Limited to provide various information regarding the T.V. Programme. Both parties had drafted a Non-Disclosure Agreement (NDA) and in that Non-Disclosure Agreement, few provisions had been stipulated such as prohibition of disclosing confidential information regarding the petitioner company, etc. After the production of the services, Kirusa raised monthly invoices for the rendered services. The petitioner company withheld the amount and replied that Kirusa had breached the obligations which had been stipulated in NDA. Kirusa had forwarded a demand notice to Mobilox under Section 8 of the Insolvency and Bankruptcy Code for non-payment. Mobilox 's response to the request notice indicated that there was a bona fide and significant conflict between the parties, including a violation of the obligations, set out in the NDA.
The respondent company filed an application in NCLT under section 9 of Insolvency and Bankruptcy Code, 2016 for the initiation of Insolvency Resolution Process. However, their application rejected on the ground that a notice of dispute had been issued by Mailbox to the operational creditor. A further appeal was filed in NCLAT challenging the order of NCLT. NCLAT had accepted the application of Kirusa Software on the ground that the Mailbox had sent a reply to the demand notice but that notice cannot fall under the scope of Section 8(2) and Section 5(6) of the Insolvency and Bankruptcy Code.
The petitioner company had filed an appeal to the Supreme Court of India challenging the order of NCLAT. Supreme Court held that the breach of the Non-Disclosure Agreement was enough to decline the Insolvency Resolution Process which was filed by the operational creditor and hence allowed the application of the petitioner company.

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com