# In the matter of Exit 10 Marketing Pvt. Ltd. (IB)-1107 (ND)-2018

> NCLT judgment dated 2018-09-14. Citation: TCN-2018-NCLT-00754. The case involves an application filed by Mr. Sandeep Vij, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 14 Sept 2018
- **Citation:** TCN-2018-NCLT-00754
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/exit-10-marketing-pvt-ltd-ib-1107-nd-2018-4ee78b11

## Summary

### Background

The case involves an application filed by Mr. Sandeep Vij, an operational creditor, against Exit 10 Marketing Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed that the corporate debtor failed to liquidate outstanding dues. The corporate debtor admitted to the liability but expressed inability to pay due to financial difficulties.

## Facts

Mr. Sandeep Vij, operating as Top Trade, filed a petition against Exit 10 Marketing Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming unpaid operational debt. Top Trade is engaged in the business of dealing with mobiles, tablets, accessories, and electronic peripherals. Exit 10 Marketing Pvt. Ltd. is an online e-commerce company. A Marketing and Distribution Agreement was executed between the parties for selling products. An invoice dated 21.03.2017 for Rs. 15,70,847/- was raised by the Operational Creditor. The Operational Creditor also purchased some goods from the Corporate Debtor for Rs. 5,00,556, which was set off, reducing the outstanding liability to Rs. 10,70,291/-. A further creditor note for Rs. 5,96,066 was raised. The Corporate

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the documents submitted by the operational creditor, including the

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

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**Application:** The court applied Section 9 to the facts of the case, noting that the

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Sandeep…
- **Respondents:** Exit 10 Marketing…

## Timeline

- **2016-07-19 — Agreement…**: Marketing and Distribution Agreement between…
- **2017-03-21 — Invoice R…**: Operational Creditor raised an…

## 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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