# In the matter of Baadl Technologies Private Limited CP No.1646-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-04-10. Citation: TCN-2018-NCLT-01565. The case involves a petition filed by Sony Music Entertainment India Private Limited…

- **Court:** NCLT
- **Order date:** 10 Apr 2018
- **Citation:** TCN-2018-NCLT-01565
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baadl-technologies-private-limited-cp-no1646-ibc-nclt-mb-mah-2017-6b714d44

## Summary

### Background

The case involves a petition filed by Sony Music Entertainment India Private Limited (Operational Creditor) against Baadl Technologies Private Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016. The Operational Creditor claimed an outstanding operational debt of ₹43,56,000/- based on a Consent Licence Agreement. The Corporate Debtor sought to terminate the agreement, which the Operational Creditor refused. A demand notice was issued, and the Corporate Debtor admitted the debt but requested time to make the payment.

## Facts

Sony Music Entertainment India Private Limited (Operational Creditor) and Baadl Technologies Private Limited (Corporate Debtor) entered into a Consent Licence Agreement on January 1, 2017, where the Operational Creditor granted a license to the Corporate Debtor to use certain sound recordings. The Corporate Debtor agreed to pay ₹3,75,00,000/- plus applicable taxes for the license, valid until October 31, 2018. The Operational Creditor raised invoices, which were initially paid. An invoice dated April 6, 2017, for ₹43,56,000/- remained unpaid. The Corporate Debtor sought to terminate the agreement via email on June 21, 2017, which the Operational Creditor refused via notice dated July 7, 2017. The Operational Creditor reminded the Corporate Debtor of the debt via letter

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

**Ratio:** The occurrence of default is a key requirement for admitting an application under Section

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**Reasoning:** The court considered the totality of the facts and circumstances, including the

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**Interpretation:** The legal interpretation focuses on the definition of 'default' under the IBC,

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**Application:** The court applied the ratio to the facts by examining the unpaid invoice of

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Sony Music…
- **Respondents:** Baadl Technologies…

## Timeline

- **2017-01-01 — Consent Licence…**: Operational Creditor and Corporate Debtor…
- **2017-04-06 — Unpaid In…**: Operational Creditor raised an invoice…

## 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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