# In the matter of Sri Maruthi Digitals Private Limited CP (IB) No. 85-9-HDB-2019

> NCLT judgment dated 2019-06-20. Citation: TCN-2019-NCLT-02828. Star India Private Limited filed a petition against Maruthi Digitals Private Limited under…

- **Court:** NCLT
- **Order date:** 20 Jun 2019
- **Citation:** TCN-2019-NCLT-02828
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-maruthi-digitals-private-limited-cp-ib-no-85-9-hdb-2019-60896151

## Summary

### Background

Star India Private Limited filed a petition against Maruthi Digitals Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to a default in payment of Rs. 23,96,859/-. The debt arose from unpaid license fees for signals supplied under a Memorandum of Understanding and a Subscription License Agreement. The Operational Creditor issued a disconnection notice on 20.06.2016 due to the outstanding amount.

## Facts

Star India Private Limited (Operational Creditor) filed a petition against Maruthi Digitals Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor defaulted on payments totaling Rs. 23,96,859/- for license fees. A Memorandum of Understanding (MOU) dated 28.12.2015, and a Subscription License Agreement dated 28.12.2015, governed the supply of signals. The MOU covered the period from 01.07.2015 to 31.12.2015, with a monthly subscription fee of Rs. 2,39,036.26. The MOU was amended on 01.12.2015 to increase the monthly subscription fee. The Subscription License Agreement covered the period from 01.01.2016 to 30.06.2016, with a fixed monthly license fee of Rs. 3,53,273/-. Due to non-payment, a disconnection

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## Issues and analysis

### Issue 1: Whether the application made by the operational …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, requires the operational creditor

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**Reasoning:** The court considered the documents submitted by the operational creditor, including the

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**Interpretation:** The completeness of the application is a prerequisite for its admission under

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**Application:** The court found that the operational creditor had submitted sufficient

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Star India…
- **Respondents:** Maruthi Digitals…

## Timeline

- **2015-07-01 — MOU Effecti…**: Memorandum of Understanding between Star India and Maruthi Digitals effective from…
- **2015-12-01 — MOU Amen…**: First Addendum to the Memorandum of Understanding dated 01.12.2015 to increase the…

## 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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