# In the matter of Transven Lifestyle Management Private Limited CP No. 04-IBC-NCLT-MB-MAH-2018

> NCLT judgment dated 2018-05-15. Citation: TCN-2018-NCLT-01409. M/s. Wealth Tree Advisors Private Limited, an operational creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 15 May 2018
- **Citation:** TCN-2018-NCLT-01409
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/transven-lifestyle-management-private-limited-cp-no-04-ibc-nclt-mb-mah-2018-0fac8136

## Summary

### Background

M/s. Wealth Tree Advisors Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Transven Lifestyle Management Private Limited, the corporate debtor, for unpaid operational debt. The operational creditor provided services to the corporate debtor as per an agreement dated 11.02.2016. The agreement involved acting as a sounding board, providing data, and other services. The corporate debtor initially agreed to pay a retainer fee of Rs. 75,000 per month, which was later updated to Rs. 1,50,000 per month via an addendum dated 07.08.2016.

## Facts

M/s. Wealth Tree Advisors Private Limited (Operational Creditor) provided services to M/s. Transven Lifestyle Management Private Limited (Corporate Debtor) as per an agreement dated 11.02.2016. The services included acting as a sounding board, providing data, and other services. Initially, the Corporate Debtor agreed to pay a retainer fee of Rs. 75,000 per month, later updated to Rs. 1,50,000 per month via an addendum dated 07.08.2016. The Operational Creditor raised 12 invoices amounting to Rs. 16,84,750. The Corporate Debtor paid Rs. 11,21,250 for invoices until December 2016, leaving an outstanding amount of Rs. 5,63,500 for invoices from January 2017 to April 2017. After reminders, the Operational Creditor terminated the contract on 05.04.2017. A notice under

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## Issues and analysis

### Issue 1: Whether the nature of the debt is an 'Operational Debt' as defined under section 5(21) of the …

**Ratio:** Section 5(21) of the Insolvency and Bankruptcy Code, 2016 defines 'Operational Debt' as a

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**Reasoning:** The court considered the facts presented by the Operational Creditor and found that the

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**Interpretation:** The court interpreted Section 5(21) to include the services provided by the

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**Application:** The court applied the definition of 'Operational Debt' to the services provided

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** M/s. Wealth Tree…
- **Respondents:** M/s. Transven…

## Timeline

- **2016-02-11 — Agreement…**: Agreement between Operational Creditor…
- **2016-08-07 — Addendum…**: Addendum to the agreement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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