# In the matter of Infiniti Television & Telecom Pvt. Ltd .(IB)-755(ND)2019

> NCLT judgment dated 2019-07-12. Citation: TCN-2019-NCLT-02543. The case involves Star India Private Limited, an operational creditor, filing a petition…

- **Court:** NCLT
- **Order date:** 12 Jul 2019
- **Citation:** TCN-2019-NCLT-02543
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/infiniti-television-telecom-pvt-ltd-ib-755nd2019-65012fa5

## Summary

### Background

The case involves Star India Private Limited, an operational creditor, filing a petition against Infiniti Television and Telecom Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claims default in payment of Rs. 67,41,539/-. The corporate debtor is a multi-system operator receiving signals from a broadcaster and re-transmitting them. An agreement dated December 20, 2017, entitled the operational creditor to a license fee of Rs. 7,62,712/- per month. The operational creditor alleges continued signal provision without disruption, raising invoices, and subsequent disconnection due to non-payment. A demand notice dated October 24, 2018, was issued, but no reply was received, leading to the filing of the

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## Facts

Star India Private Limited (Operational Creditor) filed a petition against Infiniti Television and Telecom Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 67,41,539/-. The Corporate Debtor is a multi-system operator that receives and re-transmits signals. An agreement dated December 20, 2017, existed between the parties, entitling the Operational Creditor to a license fee of Rs. 7,62,712/- per month. The Operational Creditor continued providing signals and raising invoices. Due to non-payment, the Operational Creditor disconnected the services and issued a demand notice on October 24, 2018, under Section 8 of the Code, which received no response. The Corporate Debtor admitted the liability through

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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(5) of the IBC states that the Adjudicating Authority shall, within fourteen

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**Reasoning:** The Corporate Debtor explicitly admitted the liability vide its communications on record.

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The Corporate Debtor admitted the liability and the petition complied with

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## Parties

- **Judges:** Ina Mal…; V.K. SUB…
- **Appellants:** Star India…
- **Respondents:** Infiniti televisio…

## Timeline

- **2017-12-20 — Agreement…**: Agreement executed between Star India Private Limited and Infiniti television and Telecom…
- **2018-10-24 — Demand N…**: Star India Private Limited issued a demand notice to Infiniti television and Telecom Pvt.…

## 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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