# In the matter of Productive Creations (India) Pvt Ltd C.P. No. (IB) 792-9-NCLT-AHM-2019

> NCLT judgment dated 2020-11-02. Citation: TCN-2020-NCLT-00307. The case involves an application filed by True Value Infracon LLP, an operational creditor,…

- **Court:** NCLT
- **Order date:** 2 Nov 2020
- **Citation:** TCN-2020-NCLT-00307
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/productive-creations-india-pvt-ltd-cp-no-ib-792-9-nclt-ahm-2019-12c1b660

## Summary

### Background

The case involves an application filed by True Value Infracon LLP, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Productive Creations (India) Private Limited, the corporate debtor, for non-payment of operational debt. The operational creditor had rented five cabins and fixed desks in a co-working area to the corporate debtor under an agreement dated 15th May, 2018, for an aggregate amount of Rs. 86,19,229/-. Despite raising 22 invoices, the corporate debtor made partial payments, leaving a sum of Rs. 43,93,097/- outstanding.

## Facts

True Value Infracon LLP (operational creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Productive Creations (India) Private Limited (corporate debtor). The operational creditor and corporate debtor entered into an agreement on 15.05.2018, where the operational creditor provided five cabins and fixed desks in a co-working area to the corporate debtor. The total amount agreed upon was Rs. 86,19,229/- for the period from 15.05.2018 to 14.05.2019. The operational creditor raised 22 invoices during this period. The corporate debtor made partial payments amounting to Rs. 42,26,132/-, with the last payment made on 03.05.2019. An amount of Rs. 43,93,097/- remained unpaid. The operational creditor issued a demand notice under

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## Issues and analysis

### Issue 1: Whether there is an 'operational debt' as defined exceeding Rs. 1.00 lac as per Section 4 of the …

**Ratio:** The legal principle is that for an application under Section 9 of the IBC to be admitted,

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**Reasoning:** The court reasoned that the applicant had given on rent five cabins which have a total of

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**Interpretation:** This requires interpreting Section 4 of the IBC to determine if the debt falls

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**Application:** In this case, the debt arose from providing co-working space, which qualifies

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** True Value…
- **Respondents:** Productive…

## Timeline

- **2018-05-15 — Agreement…**: Agreement between True Value Infracon LLP and Productive Creations (India) Private…
- **2018-05-15 — Period Star…**: Start date of the period for which…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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