# In the matter of Proline Infra - Trading Private Limited CP (IB) 2490-MB-2018

> NCLT judgment dated 2018-10-15. Citation: TCN-2018-NCLT-00564. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 15 Oct 2018
- **Citation:** TCN-2018-NCLT-00564
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/proline-infra-trading-private-limited-cp-ib-2490-mb-2018-635d66e2

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Lexcorp Advisory Services Private Limited (Operational Creditor) against Proline Infra – Trading Private Limited (Corporate Debtor). The Operational Creditor provided professional services to the Corporate Debtor based on a Retainership Agreement dated 01.08.2017. An invoice for ₹23,60,000/- was raised on 09.02.2018, but the Corporate Debtor failed to make the payment despite repeated requests and assurances.

## Facts

Lexcorp Advisory Services Private Limited (Operational Creditor) provided professional services to Proline Infra – Trading Private Limited (Corporate Debtor) under a Retainership Agreement dated 01.08.2017. The services included Legal, Accounting, Audit, Financial, and Secretarial Consultancy. An invoice dated 09.02.2018 for ₹23,60,000/- was raised, including ₹20,00,000/- for professional fees and ₹3,60,000/- for taxes. The Corporate Debtor acknowledged the invoice but failed to make the payment within the agreed 10 days. The Corporate Debtor requested more time to clear the dues in a letter dated 19.02.2018. Despite reminders and a termination notice dated 10.04.2018, the Corporate Debtor did not pay. The Operational Creditor issued a Demand Notice under Section 8 of

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## Issues and analysis

### Issue 1: Whether the Operational Creditor provided services to the Corporate Debtor and raised a valid …

**Ratio:** The principle is that if an operational creditor has rendered services and raised a valid

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**Reasoning:** The court noted that the Operational Creditor had duly supplied its services to the

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**Interpretation:** This issue involves interpreting the terms of the Retainership Agreement and

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**Application:** In this case, the Operational Creditor provided Legal, Accounting, Audit,

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** M/s. Lexcorp…
- **Respondents:** Proline Infra…; M/s. Proline…

## Timeline

- **2017-08-01 — Retainership A…**: Operational Creditor and Debtor…
- **2018-02-09 — Invoice…**: Operational Creditor raised…

## 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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