# In the matter of All Digital Network India Limited C.P. (IB) No. 148-BB-2020

> NCLT judgment dated 2020-08-17. Citation: TCN-2020-NCLT-00837. M/s. Supertronix, an operational creditor, filed C.P.(IB) No.148/BB/2020 under Section 9 of the…

- **Court:** NCLT
- **Order date:** 17 Aug 2020
- **Citation:** TCN-2020-NCLT-00837
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/all-digital-network-india-limited-cp-ib-no-148-bb-2020-8aac449f

## Summary

### Background

M/s. Supertronix, an operational creditor, filed C.P.(IB) No.148/BB/2020 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. All Digital Network India Limited, the corporate debtor, due to a default of Rs. 6,79,116.23. The operational creditor had been supplying TV equipment and accessories to the corporate debtor since January 2013. The corporate debtor allegedly defaulted on payments, leading to the filing of the petition.

## Facts

M/s. Supertronix (Operational Creditor) filed a petition against M/s. All Digital Network India Limited (Corporate Debtor) under Section 9 of the IBC, 2016, claiming a default of Rs. 6,79,116.23. Supertronix had been supplying TV equipment and accessories to All Digital Network since January 2013. The final invoice was issued on 30.01.2017. A statutory demand notice was issued on 31.03.2019. All Digital Network claimed financial difficulties and an oral agreement with Supertronix to waive the debt. Supertronix continued supplying accessories, albeit in lesser quantities, even after the alleged default. The petition was filed on 30.01.2020. All Digital Network argued that the debt was time-barred and that Supertronix had waived the outstanding amount. The delay in

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## Issues and analysis

### Issue 1: Whether the debt and default in question is …

**Ratio:** The IBC is not intended to be used as a recovery mechanism for time-barred debts or when

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**Reasoning:** The Adjudicating Authority found that the petition was filed with the intention to

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**Interpretation:** The court interpreted the provisions of the IBC to mean that it cannot be used

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**Application:** The court applied the ratio to the facts of the case, finding that the debt was

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Supertr…
- **Respondents:** All Digital…

## Timeline

- **2013-01-01 — Commencement o…**: Operational Creditor started supplying TV equipment and accessories to the Corporate…
- **2017-01-30 — Final In…**: Operational Creditor issued a final…

## 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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