# In the matter of Transend & Advantage Sports Pvt. Ltd. CP-1298-IB-2018

> NCLT judgment dated 2019-01-30. Citation: TCN-2019-NCLT-05103. The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 30 Jan 2019
- **Citation:** TCN-2019-NCLT-05103
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/transend-advantage-sports-pvt-ltd-cp-1298-ib-2018-99661e70

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, by the petitioner against the Corporate Debtor. The petitioner claimed that the Corporate Debtor defaulted on payments for a proforma invoice dated 2017-12-11, which was raised by the Operational Creditor based on a franchisee agreement allegedly entered into on the same day. The petitioner sought initiation of the Corporate Insolvency Resolution Process against the Corporate Debtor.

## Facts

Super Fight Promotions Pvt Ltd filed a Company Petition against Transend & Advantage Sports Pvt Ltd under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming default on a proforma invoice (No.SFL/17-18/Proforma-10) dated 2017-12-11. This invoice was allegedly raised in furtherance of a franchisee agreement purportedly entered into between the parties on the same day. The petitioner sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The court noted that the claim was based solely on the proforma invoice and that no evidence was presented to show that the agreement had been executed or that the invoice was for services rendered. The invoice amount was ₹1,88,80,000.

## Issues and analysis

### Issue 1: Whether an operational debt exists based solely on a proforma invoice raised on the same day as the …

**Ratio:** An operational debt requires evidence of an actual debt arising from the provision of

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**Reasoning:** The court reasoned that the petitioner failed to provide any material demonstrating that

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**Interpretation:** The court interpreted Section 5(20) of the Insolvency and Bankruptcy Code,

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**Application:** In this case, the petitioner's claim was based solely on a proforma invoice

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** SUPER FIGHT…
- **Respondents:** TRANSEND &…

## Timeline

- **2017-12-11 — Proforma Invo…**: Proforma Invoice No.SFL/17-18/Proforma-10…
- **2017-12-11 — Alleged Agreem…**: Franchisee agreement allegedly entered into between the Petitioner and the Corporate…

## 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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