# In the matter of Almighty Advertising Private Limited

> NCLT judgment dated 2024-07-01. Citation: TCN-2024-NCLT-01100. Richifield Packaging Private Limited, the Applicant/Operational Creditor, filed a petition…

- **Court:** NCLT
- **Order date:** 1 Jul 2024
- **Citation:** TCN-2024-NCLT-01100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/almighty-advertising-private-limited-2205d2fe

## Summary

### Background

Richifield Packaging Private Limited, the Applicant/Operational Creditor, filed a petition under Section 9 of the IBC, 2016, against Almighty Advertising Private Limited, the Respondent/Corporate Debtor, for non-payment of Rs. 1,05,00,000/-. The amount was an advance payment made by the Applicant to the Corporate Debtor for construction services for an office building in Nagpur. The construction did not commence as per the contract terms. The Applicant issued a demand notice, but no reply was received, and the construction work was not initiated. The Applicant provided ledger account statements, a copy of the work order, and a copy of the demand notice as evidence. The Corporate Debtor failed to appear despite service of notice.

## Facts

Richifield Packaging Private Limited (Operational Creditor) sought construction services from Almighty Advertising Private Limited (Corporate Debtor) for an office building in Nagpur. The Operational Creditor invited an estimate quotation from the Corporate Debtor on April 1, 2022. The Corporate Debtor provided an estimate on April 5, 2022, for Rs. 1,23,50,879.02. After revision, the Operational Creditor placed a work order on April 10, 2022, for Rs. 1,25,00,000, with terms including an advance payment to be made within a month and work completion within four months from the advance payment date. The Operational Creditor made an advance payment of Rs. 1,05,00,000 on May 6, 2022, which was acknowledged by the Corporate Debtor. The Corporate Debtor was supposed to

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## Issues and analysis

### Issue 1: Whether an advance payment made by an Operational Creditor to a Corporate Debtor for services can …

**Ratio:** An operational debt includes claims related to the provision of goods or services, even

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**Reasoning:** The court relied on the Supreme Court's judgment, which clarified that the definition of

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**Interpretation:** The interpretation of 'operational debt' is broad and encompasses advance

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**Application:** In this case, the advance payment of Rs. 1,05,00,000/- was made by Richifield

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** Richifield…
- **Respondents:** Almighty Advertisi…

## Timeline

- **2022-04-01 — Estimate Qu…**: Operational Creditor invited estimate…
- **2022-04-05 — Estimate Pr…**: Corporate Debtor provided…

## 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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