# In the matter of Carnival Films Private Limited

> NCLT judgment dated 2024-03-22. Citation: TCN-2024-NCLT-01971. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Mar 2024
- **Citation:** TCN-2024-NCLT-01971
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/carnival-films-private-limited-11dfa33a

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s Amar Constructions (Operational Creditor) against M/s Carnival Films Private Limited (Corporate Debtor) for initiating Corporate Insolvency Resolution Process (CIRP). The operational creditor and corporate debtor entered into a commercial lease deed on 25.03.2021 for a period of 15 years, where the operational creditor provided the corporate debtor premises for running a multiplex. The corporate debtor defaulted on payments, leading to the issuance of a demand notice under Section 8 of the Code. The corporate debtor acknowledged the demand notice but cited the pandemic as the reason for the delay in payments. The corporate debtor neither replied to the present

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## Facts

M/s Amar Constructions (Operational Creditor) and M/s Carnival Films Private Limited (Corporate Debtor) entered into a commercial lease deed on 25.03.2021 for a period of 15 years. The operational creditor provided the corporate debtor premises for running a multiplex at Fundore Complex, Indore. The monthly lease amount was Rs 7,36,695/- and maintenance charges were Rs 1,66,442/-. The corporate debtor was allowed to commence business from 18.03.2021. The corporate debtor started defaulting from the first month of the agreement. Parties entered into a settlement for the first three months (April to July 2021) for Rs 17,38,600/-, but still, partial payment of Rs 6,54,051/- was made by the corporate debtor. Thereafter, the corporate debtor completely stopped payment of

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## Issues and analysis

### Issue 1: Whether the petition filed 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 Adjudicating Authority noted that the operational creditor had filed the petition

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

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**Application:** The operational creditor, M/s Amar Constructions, filed the petition under

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** M/s Amar Construct…
- **Respondents:** M/s Carnival…; M/s Carnival…

## Timeline

- **2021-03-25 — Lease Deed Ex…**: Commercial lease deed executed between M/s Amar Constructions and M/s Carnival Films…
- **2021-03-18 — Commencement of…**: Lessee (M/s Carnival Films Private Limited) was allowed to commence business from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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