# 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-00185. The case originates from a petition filed by INOX Leisure Ltd. (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 5 Dec 2018
- **Citation:** TCN-2018-NCLT-00185
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-to-z-barter-pvt-ltd-cp-noib-643nd-2018-948b704c

## Summary

### Background

The case originates from a petition filed by INOX Leisure Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against A to Z Barter Pvt. Ltd. (Corporate Debtor). The Operational Creditor provided services to the Corporate Debtor by screening a 'Rasna' commercial at specified multiplexes of INOX, based on release orders. Payment for these services, amounting to Rs. 33,44,035/-, became due on 12.03.2018. The Corporate Debtor made a partial payment of INR 10,50,000/- but failed to pay the remaining amount. Cheques issued by the Corporate Debtor were dishonored due to insufficient funds.

## Facts

INOX Leisure Ltd. (Operational Creditor) provided services to A to Z Barter Pvt. Ltd. (Corporate Debtor) by screening a 'Rasna' commercial at INOX multiplexes based on five release orders. The total payment due was Rs. 33,44,035/-, with a due date of 12.03.2018. The Corporate Debtor made a partial payment of INR 10,50,000/-. The Corporate Debtor issued cheques (6161 and 6166) dated 26.04.2017 and 25.05.2017, which were dishonored due to insufficient funds. The Operational Creditor sent emails between 08.05.2017 and 18.09.2017 requesting payment. A demand notice was issued on 19.03.2018 and resent via email on 25.03.2018. The Corporate Debtor did not reply to the demand notice and did not raise any dispute regarding the unpaid debt. The Corporate Debtor initially

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## Issues and analysis

### Issue 1: Whether the petition 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 documents and submissions made by the Operational Creditor,

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

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**Application:** The Tribunal determined that the Operational Creditor had met the requirements

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## Parties

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

## Timeline

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