# in the matter of Diksat Transworld Ltd. TCP-49-IB-2017

> NCLT judgment dated 2017-07-07. Citation: TCN-2017-NCLT-00753. The case involves a petition filed under Section 433(e) of the Companies Act, 1956, which was…

- **Court:** NCLT
- **Order date:** 7 Jul 2017
- **Citation:** TCN-2017-NCLT-00753
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/diksat-transworld-ltd-tcp-49-ib-2017-e18d76c6

## Summary

### Background

The case involves a petition filed under Section 433(e) of the Companies Act, 1956, which was initially filed before the Hon'ble High Court of Madras on November 9, 2016, and subsequently transferred to the National Company Law Tribunal (NCLT), Chennai. The matter was renumbered as TCP 49/(IB)/CB/2017 and is being dealt with under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor, Prasad Productions Pvt. Ltd., leased premises to the Corporate Debtor, Diksat Transworld Ltd., which failed to pay outstanding rent arrears. The Corporate Debtor's counsel filed a counter, denying the debt. A statutory notice was issued to the Corporate Debtor on August 18, 2016, but no reply was received.

## Facts

Prasad Productions Pvt. Ltd. (Operational Creditor) leased premises to Diksat Transworld Ltd. (Corporate Debtor). The Corporate Debtor failed to pay outstanding rent arrears. The Operational Creditor issued a statutory notice to the Corporate Debtor on August 18, 2016, but received no reply. The Operational Creditor filed an application under Section 433(e) of the Companies Act, 1956, which was later transferred to NCLT and renumbered as TCP 49/(IB)/CB/2017 under Section 9 of the Insolvency and Bankruptcy Code, 2016. The outstanding debt amounted to Rs.49,79,420/- due on August 10, 2016. The Corporate Debtor's counsel claimed a petition was pending before the XIV Small Causes Court, Chennai, regarding the eviction of the Corporate Debtor, which the court deemed

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## Issues and analysis

### Issue 1: Whether the application of the Operational Creditor should be allowed and the corporate insolvency …

**Ratio:** The Operational Creditor has fulfilled all the requirements under law, and the amount of

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**Reasoning:** The court heard both sides and perused the documents. The Corporate Debtor failed to

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**Interpretation:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational

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**Application:** The court applied the ratio to the facts, noting that the Operational Creditor

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## Parties

- **Judges:** Ch. Mohd Sharief…; S. VIJAYARA…
- **Appellants:** PRASAD PRODUCTIONS…
- **Respondents:** DIKSAT TRANSWORLD…
- **Advocates:** T.Poo…; Saha…; +1 more

## Timeline

- **2016-11-09 — Petition…**: Petition filed under Section 433(e) of the Companies Act, 1956 before the Hon'ble High…
- **2016-08-18 — Statutory Noti…**: Operational Creditor issued a…

## 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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