# In the matter of VNV Productions Private Limited CP No.1806-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-04-05. Citation: TCN-2018-NCLT-01594. The case originates from a petition filed by Movies N More (India) Private Limited, the…

- **Court:** NCLT
- **Order date:** 5 Apr 2018
- **Citation:** TCN-2018-NCLT-01594
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vnv-productions-private-limited-cp-no1806-ibc-nclt-mb-mah-2017-6a096173

## Summary

### Background

The case originates from a petition filed by Movies N More (India) Private Limited, the Operational Creditor, against VNV Productions Private Limited, the Corporate Debtor, under Section 9 of the Insolvency & Bankruptcy Code, 2016. The Operational Creditor claimed an outstanding operational debt of ₹27,91,13,471/-. The background involves multiple Memoranda of Understanding (MoUs) between the parties for the production of movies, where the Petitioner agreed to fund the Respondent Company. The Petitioner advanced ₹4.5 crores to the Respondent under these MoUs. Subsequently, another MoU acknowledged an increased principal amount along with interest. The Corporate Debtor issued post-dated cheques, which were later dishonored. A Deed of Confirmation acknowledged a debt

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## Facts

Movies N More (India) Private Limited (Operational Creditor) filed a petition against VNV Productions Private Limited (Corporate Debtor) under Section 9 of the Insolvency & Bankruptcy Code, 2016, claiming an outstanding operational debt of ₹27,91,13,471/-. The parties entered into three Memoranda of Understanding (MoUs) dated 11.06.2007, 08.01.2008, and 12.05.2008, where the Petitioner agreed to fund the Respondent Company for the production of three films. The Petitioner advanced ₹4.5 crores to the Respondent under these MoUs. The advances were made via cheques, including Cheque No.320728 dated 13.05.2008 for ₹1 crore and Cheque No.320379 dated 13.05.2008 for ₹1 crore. Another MoU dated 03.04.2012 acknowledged that the Applicant had funded the Respondent Company

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## Issues and analysis

### Issue 1: Whether the debt in question has been …

**Ratio:** The legal principle is that for a petition under Section 9 of the Insolvency &

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**Reasoning:** The court reasoned that the Corporate Debtor had already 'Admitted' the debt in question

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**Interpretation:** The interpretation is that an explicit acknowledgment of the debt by the

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**Application:** In this case, the Deed of Confirmation served as evidence that the Corporate

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Movies N More…
- **Respondents:** VNV Productions…
- **Advocates:** Shruti Bh…; Sean Wass…

## Timeline

- **2007-06-11 — First Mo…**: First Memorandum of Understanding (MoU)…
- **2008-01-08 — Second M…**: Second Memorandum of Understanding (MoU)…

## 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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