# In the matter of Southasian Digital media & Entertainment Private Limited IBA-5-2020

> NCLT judgment dated 2021-09-28. Citation: TCN-2021-NCLT-00972. AMP Communications Private Limited, the Operational Creditor, filed an application under…

- **Court:** NCLT
- **Order date:** 28 Sept 2021
- **Citation:** TCN-2021-NCLT-00972
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/southasian-digital-media-entertainment-private-limited-iba-5-2020-c90a379c

## Summary

### Background

AMP Communications Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Southasian Digital Media and Entertainment Private Limited, the Corporate Debtor. The application was based on an alleged default in payment for services provided by the Operational Creditor to the Corporate Debtor, specifically related to communication strategy, digital strategy, social media strategy, advertising, conducting promotional activities, and procuring sponsorships for the Corporate Debtor's team 'The Bengaluru Tigers'. The Operational Creditor claimed that an 'Agreement for Service' dated 31.01.2018 was entered into between the parties, and

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## Facts

AMP Communications Private Limited (Operational Creditor) provided services to Southasian Digital Media and Entertainment Private Limited (Corporate Debtor) related to communication, digital, and social media strategy, advertising, promotional activities, and sponsorships for 'The Bengaluru Tigers' team. An 'Agreement for Service' was signed on 31.01.2018. Two invoices were raised on 27.02.2018 (Rs. 2,06,500) and 29.03.2018 (Rs. 4,72,000), totaling Rs. 6,78,500. The Corporate Debtor failed to pay, leading the Operational Creditor to claim Rs. 8,66,255, including 12% p.a. interest until 16.10.2019. The Operational Creditor issued a Demand Notice under Section 8 of IBC on 10.09.2019 via email and 11.09.2019 via registered post, delivered on 13.09.2019. The Corporate

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## Issues and analysis

### Issue 1: Whether the Operational Creditor has proved the existence of an operational debt and default on the …

**Ratio:** Section 9(5) of the IBC, 2016, requires the Adjudicating Authority to admit the

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**Reasoning:** The Tribunal found that the Operational Creditor had provided services to the Corporate

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**Interpretation:** The IBC defines 'operational debt' as a claim in respect of the provision of

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**Application:** The Tribunal applied the definition of 'operational debt' and 'default' to the

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** AMP Communications…
- **Respondents:** Southasian…

## Timeline

- **2018-01-31 — Agreement for…**: Agreement for Service entered into between AMP Communications and Southasian Digital…
- **2018-02-27 — Invoice…**: Invoice raised for Rs.…

## 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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