# In the matter of Picture Time Digiplex Pvt. Ltd. Company Petition No. (IB)-41(PB)-2021

> NCLT judgment dated 2021-05-03. Citation: TCN-2021-NCLT-02216. The case involves a petition filed by M/s. Encompass Events Private Limited, an operational…

- **Court:** NCLT
- **Order date:** 3 May 2021
- **Citation:** TCN-2021-NCLT-02216
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/picture-time-digiplex-pvt-ltd-company-petition-no-ib-41pb-2021-df414f30

## Summary

### Background

The case involves a petition filed by M/s. Encompass Events Private Limited, an operational creditor, against M/s. Picture Time Digiplex Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiation of the Corporate Insolvency Resolution Process (CIRP) due to the corporate debtor's inability to liquidate outstanding dues. The operational creditor provided event management services to the corporate debtor for an event named 'Kamal Yatra' and raised invoices for Rs. 79,65,000/-. The corporate debtor made a partial payment of Rs. 41,84,250/-, leaving an outstanding amount of Rs. 36,45,750/-. The operational creditor sent a demand notice on 2019-04-11, but the corporate debtor failed to make the payment.

## Facts

M/s. Encompass Events Private Limited (Operational Creditor) provided event management services to M/s. Picture Time Digiplex Pvt. Ltd. (Corporate Debtor) for 'Kamal Yatra' in Uttar Pradesh. The Corporate Debtor agreed to pay for the services. After the event, the Operational Creditor raised invoices for Rs. 79,65,000/- (inclusive of GST). The Corporate Debtor made a partial payment of Rs. 41,84,250/-, leaving Rs. 36,45,750/- outstanding. The Operational Creditor sent a demand notice dated 2019-04-11. The Corporate Debtor did not raise any dispute or deny making the payment but failed to pay the outstanding amount. The Operational Creditor filed a Section 9 petition under the Insolvency and Bankruptcy Code, 2016. The Central Government issued a notification on

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## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, is maintainable …

**Ratio:** The threshold limit for initiating insolvency proceedings is determined by the

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**Reasoning:** The court reasoned that the notification dated 2020-03-24 increased the threshold limit

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**Interpretation:** The interpretation of Section 4 of the I&B Code and the notification issued

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**Application:** In this case, the claim amount was Rs. 36,45,750/-, which is less than the

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** M/s. Encompass…
- **Respondents:** M/s. Picture Time…

## Timeline

- **2018-05-10 — Email Agr…**: Corporate Debtor agreed to make payment for services provided by Operational Creditor,…
- **2019-04-11 — Demand N…**: Operational Creditor sent a demand…

## 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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