# In the matter of Free Culture Apparels Pvt. Ltd. CP No. (IB) 128-(PB)-2017

> NCLT judgment dated 2017-09-01. Citation: TCN-2017-NCLT-00491. The case pertains to an application filed by Ienergizer IT Services Pvt. Ltd., the Operational…

- **Court:** NCLT
- **Order date:** 1 Sept 2017
- **Citation:** TCN-2017-NCLT-00491
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/free-culture-apparels-pvt-ltd-cp-no-ib-128-pb-2017-8aa98c98

## Summary

### Background

The case pertains to an application filed by Ienergizer IT Services Pvt. Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Free Culture Apparels Pvt. Ltd., the Corporate Debtor, for outstanding operational debt. The Operational Creditor provided call center services to the Corporate Debtor based on an agreement dated 21.10.2011. Initially, the Corporate Debtor made regular payments, but from August 2015, payments faltered, leading to default. The Operational Creditor issued demand notices under the Companies Act, 1956, and subsequently filed a company petition before the High Court of Delhi, which was later transferred to the NCLT. After withdrawing the

…

## Facts

Ienergizer IT Services Pvt. Ltd. (Operational Creditor) provided call center services to Free Culture Apparels Pvt. Ltd. (Corporate Debtor) based on a 'Call Centre Agreement' dated 21.10.2011. The Corporate Debtor initially made regular payments, but from August 2015, payments started faltering, leading to defaults. The Operational Creditor issued a demand notice dated 19.08.2016 under sections 433 and 434 of the Companies Act, 1956, and another notice dated 15.10.2016. As there was no reply, the Operational Creditor filed a company petition (CP 1208/2016) before the Hon'ble High Court of Delhi, which was later transferred to the NCLT. The Operational Creditor withdrew the petition with liberty to file a fresh one. A demand notice dated 25.04.2017 was issued under

…

## Issues and analysis

### Issue 1: Whether the Operational Creditor has proved by overwhelming evidence that default has occurred, …

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

…

**Reasoning:** The court considered the evidence presented by the Operational Creditor, including

…

**Interpretation:** Section 9 requires the operational creditor to demonstrate that a debt is due

…

**Application:** The Operational Creditor provided invoices and demand notices showing the

…

## Parties

- **Judges:** M. M. K…; DeepaKr…
- **Appellants:** lenergizer IT…
- **Respondents:** Free Culture…

## Timeline

- **2011-10-21 — Call Centre A…**: Agreement entered into between Ienergizer IT Services Pvt. Ltd. and Free Culture Apparels…
- **2015-08-01 — Default in P…**: Free Culture Apparels Pvt. Ltd. started…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/free-culture-apparels-pvt-ltd-cp-no-ib-128-pb-2017-8aa98c98