# In the matter of Karington Club and Resort Limited CP (IB) No. 224-NCLT-AHM-2019

> NCLT judgment dated 2021-09-27. Citation: TCN-2021-NCLT-00985. Harmony Multimedia Pvt Ltd, the Operational Creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 27 Sept 2021
- **Citation:** TCN-2021-NCLT-00985
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/karington-club-and-resort-limited-cp-ib-no-224-nclt-ahm-2019-1a5a94b5

## Summary

### Background

Harmony Multimedia Pvt Ltd, the Operational Creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Karington Club & Resort Limited, the Corporate Debtor, for a debt of Rs. 20,30,843.75, including interest. The Operational Creditor claimed to have released various advertisements for the Corporate Debtor in local dailies. The initial petition was admitted and disposed of, but later, after the failure of the Corporate Debtor to honor post-dated cheques given as an undertaking to clear dues, the Operational Creditor filed for restoration of the petition.

## Facts

Harmony Multimedia Pvt Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Karington Club & Resort Limited (Corporate Debtor) for unpaid dues of Rs. 20,30,843.75, including interest. The debt arose from advertisements released by the Operational Creditor on behalf of the Corporate Debtor. The Corporate Debtor failed to make payments as per the invoices. An initial petition was filed, admitted, and then withdrawn based on the Corporate Debtor's undertaking to clear dues via post-dated cheques. The Corporate Debtor defaulted on these cheques, leading the Operational Creditor to file for restoration of the petition. The Corporate Debtor claimed an understanding to settle the debt partly by cash and

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency & …

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

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**Reasoning:** The court found that the Operational Creditor had provided sufficient evidence, including

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover debts from

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

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Harmony Multimedia…
- **Respondents:** Karington Club &…; Karington Club &…

## Timeline

- **2019-03-18 — Initial Petiti…**: The Operational Creditor filed…
- **2019-07-10 — Petition Admitted and…**: The initial petition was admitted…

## 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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