# In the matter of ADTV Communications Private Ltd.

> NCLT judgment dated 2023-04-24. Citation: TCN-2023-NCLT-03662. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 24 Apr 2023
- **Citation:** TCN-2023-NCLT-03662
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/adtv-communications-private-ltd-e910c3c6

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Mr. Rakesh Kumar Jain, the Financial Creditor, against ADTV Communications Private Limited, the Corporate Debtor. The applicant sought initiation of Corporate Insolvency Resolution Process (CIRP) based on a decree passed by the Delhi High Court for Rs. 15,23,00,000/- in favor of the applicant, stemming from a settlement agreement dated 11.09.2014. The Corporate Debtor made partial payments, but a cheque for Rs. 10,00,00,000/- was dishonored on 07.04.2016. The Financial Creditor then filed an execution petition before the High Court. The application under Section 7 of IBC was filed on 15.10.2019.

## Facts

Mr. Rakesh Kumar Jain, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against ADTV Communications Private Limited (formerly known as AEG Infratech Private Limited), the Corporate Debtor. The application was based on a decree for Rs. 15,23,00,000/- passed by the Delhi High Court in CS (OS) No. 2183/2013, pursuant to a settlement agreement dated 11.09.2014. The Corporate Debtor made partial payments totaling Rs. 5,23,00,000/-, but a cheque for Rs. 10,00,00,000/-, payable on 31.03.2016, was dishonored on 07.04.2016. The Financial Creditor filed Execution Petition No. 65/2016 before the Delhi High Court to attach the Corporate Debtor's bank accounts. The application under Section 7 of IBC was filed on 15.10.2019.

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** A decree-holder cannot be classified as a Financial Creditor under Section 5(7) of the

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**Reasoning:** The Tribunal relied on judgments from the Hon'ble NCLAT, which held that a decree-holder

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**Interpretation:** The interpretation of Section 5(7) of the IBC, as clarified by NCLAT, excludes

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**Application:** Since the applicant's claim was based on a decree from the High Court, and

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Rakesh Kuma…
- **Respondents:** ADTV Communication…; ADTV Communication…

## Timeline

- **2014-09-11 — Settlement Ag…**: Settlement agreement entered into between Shri Rakesh Kumar Jain and ADTV Communication…
- **2015-08-10 — Decree P…**: The Hon'ble High Court passed a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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