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

> NCLT judgment dated 2019-07-12. Citation: TCN-2019-NCLT-02556. The case involves Star India Private Limited, the Operational Creditor, filing a petition…

- **Court:** NCLT
- **Order date:** 12 Jul 2019
- **Citation:** TCN-2019-NCLT-02556
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/infiniti-television-telecom-pvt-ltd-ib-755nd2019-6fd54007

## Summary

### Background

The case involves Star India Private Limited, the 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, due to default in payment of dues. Star India provided broadcasting services to Infiniti Television, a multi-system operator, under an agreement dated December 20, 2017, which entitled Star India to a license fee of Rs. 7,62,712 per month. Infiniti Television failed to pay the dues, leading to disconnection of services by Star India and the subsequent filing of the insolvency petition.

## Facts

Star India Private Limited (Operational Creditor) provided broadcasting services to Infiniti Television and Telecom Pvt. Ltd. (Corporate Debtor) under an agreement dated December 20, 2017. The agreement stipulated a monthly license fee of Rs. 7,62,712. Infiniti Television defaulted on payments, leading Star India to disconnect services. Star India issued a demand notice dated October 24, 2018, under Section 8 of the IBC, but received no reply. Infiniti Television admitted the liability through communications, TDS deductions, and a proposed repayment plan that was not fulfilled. The Corporate Debtor is a multi-system operator that receives signals from a broadcaster and re-transmits the same to the consumers or cable operators in the territory of the State of Assam.

## 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 court reasoned that the Corporate Debtor explicitly admitted the liability vide its

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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 court applied the ratio to the facts by noting that the Corporate Debtor

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## Parties

- **Judges:** Ina Mal…; SH. V.K. SU…
- **Appellants:** Star India…
- **Respondents:** Infiniti televisio…
- **Advocates:** Kunal T…; Niti…; +1 more

## 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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