# In the matter of All That Hype Media Private Limited C.P.(IB) No. 143-BB-2017

> NCLT judgment dated 2019-03-12. Citation: TCN-2019-NCLT-04474. Ms. Rohita, an operational creditor, filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 12 Mar 2019
- **Citation:** TCN-2019-NCLT-04474
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/all-that-hype-media-private-limited-cpib-no-143-bb-2017-21bd7e57

## Summary

### Background

Ms. Rohita, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. All That Hype Media Private Limited, the corporate debtor, due to a default of Rs. 7,95,403/-. The operational creditor claimed that the corporate debtor failed to pay her share of profits and other dues as per an oral agreement. The corporate debtor disputed the claim, stating that there was no formal agreement and that the operational creditor's contribution to the company was limited.

## Facts

Ms. Rohita, an operational creditor, claimed that she was entitled to Rs. 7,95,403/- from M/s. All That Hype Media Private Limited, the corporate debtor, based on an oral agreement for a share of profits and equity in the company. She alleged that she joined the company in December 2015 and contributed significantly to its business. The corporate debtor, represented by Mrs. RuhiFazila Shaik, denied the existence of any formal agreement and claimed that the operational creditor's contribution was limited. The corporate debtor also argued that the operational creditor had been paid salary/remuneration for the months of June and July 2016. The operational creditor filed a petition under Section 9 of the IBC, 2016, seeking to initiate CIRP against the corporate debtor. The

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016, should be admitted for initiating CIRP …

**Ratio:** The existence of an undisputed debt is a sine qua non for initiating CIRP. If there is a

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**Reasoning:** The NCLT relied on the Supreme Court's judgment in Equipment Conductors and Cables Ltd.,

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**Interpretation:** The IBC, 2016, is not intended to be used as a recovery forum for disputed

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**Application:** In this case, the NCLT found that there was a pre-existing dispute regarding

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Ms.Ro…
- **Respondents:** All That Hype…; M/s. All That…

## Timeline

- **2014-09-01 — Operational Creditor…**: Ms. Rohita joined All That Hype Media Pvt. Ltd. as a part-time employee to launch and…
- **2015-12-01 — Operational Creditor…**: Ms. Rohita started working…

## 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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