# In the matter of Network18 Media & Investments Limited CP (IB) No.4287-MB.IV-2018

> NCLT judgment dated 2020-08-04. Citation: TCN-2020-NCLT-00906. This case involves a Company Petition filed by SITI Networks Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 4 Aug 2020
- **Citation:** TCN-2020-NCLT-00906
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/network18-media-investments-limited-cp-ib-no4287-mbiv-2018-13f9ed57

## Summary

### Background

This case involves a Company Petition filed by SITI Networks Limited (Operational Creditor) against Network18Media & Investments Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor sought to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for failing to pay a sum of ₹1,00,46,506.00 as principal and ₹1,49,06,813.00 as interest, totaling ₹2,49,53,319.00, as of the default date of 12.01.2016. The Corporate Debtor argued that the Demand Notice was not issued in accordance with Form 3, failed to provide sufficient details of the transactions, and disputed the authenticity of the Statement of Accounts. The Corporate Debtor also contended that all legitimate invoices had been

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## Facts

SITI Networks Limited (Operational Creditor) filed a petition against Network18Media & Investments Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The claim was for ₹1,00,46,506.00 as principal and ₹1,49,06,813.00 as interest, totaling ₹2,49,53,319.00, as of 12.01.2016. The Operational Creditor and Corporate Debtor had an agreement for allotment of band and placement on the Corporate Debtor's cable network. The Corporate Debtor made part payments of ₹12,79,99,875/- against unpaid invoices. The Operational Creditor served a Demand Notice in Form 3 dated 09.08.2018. The Corporate Debtor, in its reply dated 03.05.2019, contested the petition, arguing that the Demand Notice was not in accordance with

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## Issues and analysis

### Issue 1: Whether the Demand Notice issued by the Operational Creditor was in compliance with the …

**Ratio:** The claim of an operational creditor has to be based on the Demand Notice under section 8

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**Reasoning:** The court found that the Demand Notice did not specifically mention any agreement but

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**Interpretation:** The Demand Notice is a critical document in the CIRP process, and it must

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**Application:** In this case, the court found that the Demand Notice was deficient because it

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## Parties

- **Judges:** Rajasekha…; Ravikumar…; +1 more
- **Appellants:** Siti Networks…
- **Respondents:** Network18Media &…

## Timeline

- **2011-08-01 — Corporate Debtor…**: The Corporate Debtor approached the Operational Creditor for allotment of band and…
- **2011-09-01 — Agreement for Allotment…**: Parties entered into an Agreement for Allotment of Band and Placement, which was to run…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 2(20) — Application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-2)

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