# In the matter of A To Z Barter Pvt. Ltd. C.P. No.IB-643(ND)-2018

> NCLT judgment dated 2018-12-05. Citation: TCN-2018-NCLT-00178. The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Dec 2018
- **Citation:** TCN-2018-NCLT-00178
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-to-z-barter-pvt-ltd-cp-noib-643nd-2018-4fa870fe

## Summary

### Background

The case originates from a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by INOX Leisure Ltd. (Operational Creditor) against A to Z Barter Pvt. Ltd. (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments amounting to Rs. 33,44,035/- due to release orders executed between them. The Corporate Debtor had placed orders for screening a 'Rasna' commercial at specified multiplexes of INOX, issuing 5 release orders. The Operational Creditor commenced services based on these release orders, and invoices were raised. Despite partial payment of INR 10,50,000/-, the outstanding amount remained due. Cheques issued by the Corporate Debtor were dishonored due to insufficient funds.

## Facts

INOX Leisure Ltd. (Operational Creditor) filed a petition against A to Z Barter Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The claim arose from unpaid dues of Rs. 33,44,035/-. The debt originated from release orders for screening a 'Rasna' commercial at INOX multiplexes, issued by the Corporate Debtor. Five release orders were issued, and services were provided by the Operational Creditor. The Corporate Debtor made a partial payment of INR 10,50,000/-, but the remaining amount remained outstanding. The Corporate Debtor issued cheques that were dishonored due to insufficient funds. The Operational Creditor sent demand notices to the Corporate Debtor, but received no response. The first demand notice was returned as 'no such

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Tribunal considered the evidence presented by the Operational Creditor, including the

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The Tribunal found that the Operational Creditor had provided sufficient

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## Parties

- **Judges:** R. VARADH…; V.K. SUB…
- **Appellants:** Inox Leisur…
- **Respondents:** A to Z Barter…

## Timeline

- **2017-04-26 — Cheque Issu…**: Corporate Debtor issued…
- **2017-05-25 — Cheque Issu…**: Corporate Debtor issued…

## 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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