# In the matter of Cinema Ventures Private Limited C.P. No. 160-IBC-MB-2021

> NCLT judgment dated 2022-07-05. Citation: TCN-2022-NCLT-01878. The case involves a Company Petition filed by Sanjay Sodhi, the Operational Creditor, against…

- **Court:** NCLT
- **Order date:** 5 Jul 2022
- **Citation:** TCN-2022-NCLT-01878
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cinema-ventures-private-limited-cp-no-160-ibc-mb-2021-141eb729

## Summary

### Background

The case involves a Company Petition filed by Sanjay Sodhi, the Operational Creditor, against Cinema Ventures Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed an unresolved operational debt of Rs. 1,16,79,622. The Corporate Debtor initially sought time to settle the matter and had entered into a settlement agreement with the Operational Creditor, where the Operational Creditor waived a certain amount. However, the Corporate Debtor failed to make any payments as per the settlement agreement.

## Facts

Sanjay Sodhi, the Operational Creditor, filed a Company Petition against Cinema Ventures Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The operational debt claimed was Rs. 1,16,79,622. The Corporate Debtor initially sought time to settle the matter and entered into a settlement agreement with the Operational Creditor, who waived a certain amount. However, the Corporate Debtor failed to make any payments as per the settlement agreement. The Corporate Debtor did not file a reply to the petition. The court noted a clear admission of debt and default by the Corporate Debtor. The Company Petition was filed on 2021-03-16, and the settlement agreement was dated 2021-10-30. The Corporate Debtor's

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## Issues and analysis

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

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

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**Reasoning:** The court reasoned that the Corporate Debtor had admitted to the debt and had defaulted

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**Interpretation:** Section 9 is interpreted to mean that if an operational debt exists, and the

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**Application:** In this case, the Operational Creditor demonstrated the existence of an

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## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** Sanjay…
- **Respondents:** Cinema Ventures…

## Timeline

- **2021-03-16 — Filing of Company…**: The Company Petition was filed…
- **2021-10-30 — Settlement Ag…**: Both parties entered into an…

## 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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