# In the matter of Advance Multisystem Broadband Communications Limited CP (IB) No. 1510-KB-2018

> NCLT judgment dated 2019-09-30. Citation: TCN-2019-NCLT-01145. Star India Private Limited, the Operational Creditor, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01145
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/advance-multisystem-broadband-communications-limited-cp-ib-no-1510-kb-2018-7b78fe8f

## Summary

### Background

Star India Private Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Advance Multisystem Broadband Communications Limited, the Corporate Debtor, to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and Corporate Debtor had entered into a subscription license agreement for the transmission of channels. The licensing fee was fixed at Rs. 50 lakhs per month excluding taxes. The Corporate Debtor defaulted on payments, leading the Operational Creditor to issue a disconnection notice and deactivate the supply of signals. A fresh supplementary license agreement was entered into, but the Corporate Debtor failed to make payments. The Operational Creditor issued a demand notice

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## Facts

Star India Private Limited (Operational Creditor) and Advance Multisystem Broadband Communications Limited (Corporate Debtor) entered into a subscription license agreement for channel transmission. The agreed licensing fee was Rs. 50 lakhs per month, excluding taxes. The Corporate Debtor defaulted on payments, leading the Operational Creditor to issue a disconnection notice and deactivate signal supply from 2017-08-28. A settlement agreement was attempted, but the Operational Creditor continued supplying signals. A fresh supplementary license agreement was effective from 2018-01-01 to 2018-12-31. The Corporate Debtor failed to make payments, prompting the Operational Creditor to issue a demand notice in August 2018 via post and email. The postal notice was returned

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## Issues and analysis

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

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

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**Reasoning:** The court considered the submissions made by the Operational Creditor's counsel and the

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**Interpretation:** The legal issue revolves around whether the operational creditor has met the

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**Application:** The court applied the ratio to the facts by determining that the Operational

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## Parties

- **Judges:** Madan B.…; V.K. G…
- **Appellants:** Star India…
- **Respondents:** Advance Multisyste…

## Timeline

- **2017-08-28 — Disconnection…**: Operational Creditor issued a disconnection notice and deactivated supply of signals to…
- **2017-11-01 — Default Comme…**: Period of default stated to have…

## 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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