# In the matter of AG8 Ventures Limited CP (IB) 26-MP-2022

> NCLT judgment dated 2022-08-05. Citation: TCN-2022-NCLT-01436. The case involves an application filed by D.B. Corp Ltd (Operational Creditor) under Section 9…

- **Court:** NCLT
- **Order date:** 5 Aug 2022
- **Citation:** TCN-2022-NCLT-01436
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ag8-ventures-limited-cp-ib-26-mp-2022-204a5f0a

## Summary

### Background

The case involves an application filed by D.B. Corp Ltd (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against AG8 Ventures Private Limited (Corporate Debtor). The Operational Creditor claims a default amount of Rs 10,77,17,000/- arising from barter agreements where the Corporate Debtor was to provide cash and transfer/sale of units in exchange for advertisement services. The Corporate Debtor failed to transfer/sell 19 units aggregating to Rs 5,25,89,000/-.

## Facts

D.B. Corp Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against AG8 Ventures Private Limited (Corporate Debtor). The claim is for Rs 10,77,17,000/-, with Rs 5,25,89,000/- outstanding towards the principle and Rs 5,51,28,000/- as interest. The debt arose from barter agreements between 29.09.2010 and 13.08.2019, where the Corporate Debtor was to provide advertisement services in exchange for cash and transfer/sale of units. The Operational Creditor provided advertisement services worth Rs 11,74,22,441/-. Out of 41 units (Rs 11,73,36,000/-), only 22 units were discharged. The remaining 19 units (Rs 5,25,89,000/-) were not handed over. The Operational Creditor sent a legal notice on 30.12.2021

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the submissions and evidence presented by the operational creditor

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover

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**Application:** The court found that the operational creditor had met the requirements under

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** DB Corp…
- **Respondents:** AG8 Ventures…; AG8 Ventur…

## Timeline

- **2010-09-29 — Barter Agre…**: Operational Creditor and Corporate Debtor…
- **2019-08-13 — End of Barter A…**: The period of barter…

## 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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