# In the matter of Manmohan Gupta vs. MDS Digital Media Pvt. Ltd. & Anr Company Appeal (AT) (Insolvency) No.202 of 2023

> NCLAT judgment dated 2023-04-18. Citation: TCN-2023-NCLAT-00607. The case involves an appeal against an order dated 16.12.2022, where the Adjudicating…

- **Court:** NCLAT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLAT-00607
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/manmohan-gupta-vs-mds-digital-media-pvt-ltd-anr-company-appeal-af22ab3a

## Summary

### Background

The case involves an appeal against an order dated 16.12.2022, where the Adjudicating Authority admitted a Section 9 application filed by the Operational Creditor. The appellant contested the admission, arguing that there was no actual debt amount and that the balance sheet of the Operational Creditor did not reflect any debt. The appellant also claimed that the amount claimed by the Operational Creditor was incorrect.

## Facts

The Adjudicating Authority admitted a Section 9 application filed by the Operational Creditor on 16.12.2022. The Appellant filed an appeal against this order, arguing that there was no actual debt amount and that the Operational Creditor's balance sheet did not show any debt. The Appellant also claimed that the amount claimed by the Operational Creditor was incorrect. The Corporate Debtor admitted to an amount of Rs.8,56,836/-, which was more than the threshold. There was a delay of 9 days in filing the appeal, for which the Appellant sought condonation. The key fact is the admission of debt by the Corporate Debtor, which formed the basis for the Adjudicating Authority's decision to admit the Section 9 application.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 9 application filed by the …

**Ratio:** The Adjudicating Authority can admit a Section 9 application if the admitted debt amount

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**Reasoning:** The court reasoned that since the Corporate Debtor admitted to a debt amount exceeding

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**Interpretation:** The interpretation of Section 9 of the IBC allows for the admission of an

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**Application:** In this case, the Corporate Debtor's admission of a debt exceeding the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Manmohan…
- **Respondents:** MDS Digital Media…

## Timeline

- **2022-12-16 — Order by Adjudicating…**: The Adjudicating Authority passed an order admitting a Section 9 application filed by the…
- **2023-01-24 — Appeal F…**: The Appellant filed an appeal against the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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