# In the matter of Air Carnival Private Limited CP-565-(IB)-CB-2017

> NCLT judgment dated 2017-11-02. Citation: TCN-2017-NCLT-00252. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Nov 2017
- **Citation:** TCN-2017-NCLT-00252
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/air-carnival-private-limited-cp-565-ib-cb-2017-53be86b5

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by an Operational Creditor, Mr. Murali Sundaram, against the Corporate Debtor, M/s. Air Carnival Private Limited, for initiation of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted in making payments for remuneration and travel expenses. The Adjudicating Authority (National Company Law Tribunal, Chennai) considered the application and the submissions made by the Operational Creditor.

## Facts

Mr. Murali Sundaram, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Air Carnival Private Limited, the Corporate Debtor. Mr. Sundaram claimed that he was appointed as Director Operation on 2015-12-12 and rendered services to the Corporate Debtor, but the Corporate Debtor failed to pay his remuneration from August 2016, amounting to Rs. 30,00,000. Additionally, Rs. 11,46,628 incurred as travel expenses was not reimbursed. The total amount due as of April 2017 was Rs. 48,41,818 plus interest. The Operational Creditor sent a notice under Section 8 of the I&B Code on 2017-04-21, claiming the outstanding debt, but the Corporate Debtor did not respond. The Operational Creditor filed an affidavit and

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has met the requirements under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, outlines the requirements for an

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**Reasoning:** The Adjudicating Authority considered the fact that the Operational Creditor had sent a

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**Interpretation:** Section 9 of the IBC is interpreted to mean that an Operational Creditor must

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**Application:** In this case, the Operational Creditor provided evidence of the outstanding

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## Parties

- **Judges:** CH. MOHD SHARIEF…; S. VIJAYARA…
- **Appellants:** Murali Su…
- **Respondents:** Air Carnival…; M/s. Air Carnival…

## Timeline

- **2015-12-12 — Appointment of…**: Mr. Murali Sundaram was appointed as…
- **2016-08-01 — Default in…**: The Corporate Debtor failed to pay the Operational Creditor's remuneration from August…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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