# In the matter of Arrina Education Services Pvt. Ltd. I.A. 1204-2023 and C.P.(IB)-85-(MB)-2022

> NCLT judgment dated 2023-06-21. Citation: TCN-2023-NCLT-02857. Collegedunia Web Private Limited, the Operational Creditor, filed a Company Petition under…

- **Court:** NCLT
- **Order date:** 21 Jun 2023
- **Citation:** TCN-2023-NCLT-02857
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/arrina-education-services-pvt-ltd-ia-1204-2023-and-cpib-85-mb-2022-086fcf4a

## Summary

### Background

Collegedunia Web Private Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Arrina Education Services Private Limited, the Corporate Debtor, for an operational debt of Rs. 1,18,85,550/-. The Corporate Debtor opposed the petition, citing pre-existing disputes and filed an Interlocutory Application challenging the maintainability of the main Company Petition under Section 10A of the Code.

## Facts

Collegedunia Web Pvt. Ltd. (Operational Creditor) filed a Company Petition against Arrina Education Services Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP for an operational debt of Rs. 1,18,85,550/-. The Corporate Debtor opposed the petition, claiming pre-existing disputes and filing an Interlocutory Application challenging the maintainability of the petition under Section 10A of the Code. The Operational Creditor claimed the date of default was 31.01.2021, based on an invoice dated 31.12.2020. The Corporate Debtor argued that the default date fell within the period prohibited by Section 10A of the Code. The demand notice was issued on 14.04.2021. The General Service Agreement (GSA) between the

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by the Operational Creditor is maintainable under Section 9 of …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, prohibits the initiation of CIRP

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**Reasoning:** The court reasoned that the date of default, as claimed by the Operational Creditor, fell

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**Interpretation:** Section 10A provides a bar on initiating CIRP for defaults occurring during the

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**Application:** In this case, the Operational Creditor claimed the date of default was

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** Collegedunia Web…
- **Respondents:** Arrina Education…
- **Advocates:** Alok Sh…; Ranjeev Ca…

## Timeline

- **2020-12-31 — Invoice…**: The Petitioner/Operational Creditor issued an…
- **2021-01-31 — Default…**: The Petitioner/Operational Creditor…

## 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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