# In the matter of Sanny Digital Communications Private Limited CP (IB) No. 122-9-HDB-2019

> NCLT judgment dated 2019-06-20. Citation: TCN-2019-NCLT-02830. The case involves a Company Petition filed by M/s. Star India Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 20 Jun 2019
- **Citation:** TCN-2019-NCLT-02830
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sanny-digital-communications-private-limited-cp-ib-no-122-9-hdb-2019-055de97c

## Summary

### Background

The case involves a Company Petition filed by M/s. Star India Private Limited (Operational Creditor) against M/s. SANNY DIGITAL COMMUNICATIONS PRIVATE LIMITED (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor provided broadcasting services to the Corporate Debtor, who is a Multi System Operator (MSO). Subscription Lease Agreements were entered into, but the Corporate Debtor defaulted on payments. The Operational Creditor issued a demand notice, but no payment was received.

## Facts

M/s. Star India Private Limited (Operational Creditor) filed a Company Petition against M/s. SANNY DIGITAL COMMUNICATIONS PRIVATE LIMITED (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to unpaid subscription fees. The Corporate Debtor, a Multi System Operator (MSO), received broadcasting services from the Operational Creditor under Subscription Lease Agreements. The Operational Creditor provided signals of channels to the Corporate Debtor and raised invoices for the agreed Licence fee. The Corporate Debtor defaulted on payments, with Rs.54,68,629/- remaining due from previous agreements. A Licence Agreement dated 08.08.2017 fixed the monthly licence fee at Rs.30,00,000/-. The Corporate Debtor made a payment of Rs. 1,08,50,000/-,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, defines 'default' as non-payment of debt when

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**Reasoning:** The court relied on the evidence presented by the Operational Creditor, including the

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**Interpretation:** The term 'default' under the IBC is interpreted strictly to mean a clear

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**Application:** In this case, the Corporate Debtor's failure to pay the outstanding amount of

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## Parties

- **Judges:** K. Anantha…
- **Appellants:** M/s. Star India…
- **Respondents:** M/s Sanny Digital…
- **Advocates:** R.Sushanth…

## Timeline

- **2017-07-01 — Agreement Peri…**: Start of the agreement period between the…
- **2017-08-08 — Licence Agreem…**: Licence Agreement signed, fixing monthly…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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