# In the matter of Blue Mushroom Infozone Private Limited

> NCLT judgment dated 2023-07-10. Citation: TCN-2023-NCLT-02598. Go Airlines (India) Limited, the Operational Creditor, filed a Company Petition under Section 9…

- **Court:** NCLT
- **Order date:** 10 Jul 2023
- **Citation:** TCN-2023-NCLT-02598
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/blue-mushroom-infozone-private-limited-ae6186d0

## Summary

### Background

Go Airlines (India) Limited, the Operational Creditor, filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Blue Mushroom Infozone Private Limited, the Corporate Debtor, alleging default in payment. The petition was filed before the Adjudicating Authority on the grounds that the Corporate Debtor failed to make payment of a principal sum of Rs. 51,52,426/- along with interest of Rs. 8,75,772/-, aggregating to Rs. 60,28,198/-. A branding agreement was executed between the parties on 31.12.2015, and the Operational Creditor raised 39 invoices for a total amount of Rs. 1,56,37,701/-, out of which the Corporate Debtor paid Rs. 95,85,275/-. The Operational Creditor

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## Facts

Go Airlines (India) Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Blue Mushroom Infozone Private Limited, the Corporate Debtor. The claim was based on a default in payment of Rs. 51,52,426/- principal and Rs. 8,75,772/- interest, totaling Rs. 60,28,198/-. A branding agreement was in place between the parties since 31.12.2015. The Operational Creditor raised 39 invoices totaling Rs. 1,56,37,701/-, against which the Corporate Debtor paid Rs. 95,85,275/-. A demand notice dated 20.02.2018 was issued, initially returned undelivered, but later delivered on 08.08.2018. The Corporate Debtor contested the claim, alleging incorrect calculation,

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 defines 'default' as non-payment of debt when it

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**Reasoning:** The NCLT found that the Corporate Debtor failed to pay the outstanding amount of Rs.

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**Interpretation:** The definition of 'default' under the IBC requires a clear establishment of a

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**Application:** The Corporate Debtor's failure to pay the outstanding amount, despite the

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## Parties

- **Judges:** Shyam Babu…; Kuldip Kumar…
- **Appellants:** Go Airlines…
- **Respondents:** Blue Mushroom…

## Timeline

- **2015-12-31 — Branding Ag…**: A branding Agreement was executed between Go Airlines (India) Limited and Blue Mushroom…
- **2017-03-03 — Email Commun…**: The Corporate Debtor admitted its liability to pay Rs. 40 Lakhs to the Operational…

## 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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