# In the matter of Datalink Multi Trading Pvt. Ltd.

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02157. Diligent Media Corporation Limited filed a Company Petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02157
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/datalink-multi-trading-pvt-ltd-d7b489ab

## Summary

### Background

Diligent Media Corporation Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Datalink Multi Trading Private Limited. The Operational Creditor claimed that the Corporate Debtor defaulted on a payment of Rs. 16,70,23,315/- related to an operational debt arising from a Memorandum of Understanding (MOU) where the Corporate Debtor was to provide services related to the acquisition and purchase of land. The Operational Creditor had advanced Rs. 13,87,50,000/- towards this transaction.

## Facts

Diligent Media Corporation Limited (Operational Creditor) sought to initiate Corporate Insolvency Resolution Process (CIRP) against Datalink Multi Trading Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor and Corporate Debtor entered into a Memorandum of Understanding (MOU) dated April 1, 2019, where the Corporate Debtor was to provide services related to the acquisition and purchase of land admeasuring 25,000 square meters at Hyderabad. The Operational Creditor advanced Rs. 15,00,00,000/- which was later reduced to Rs. 13,87,50,000/-. The Corporate Debtor failed to arrange the premises as per the specifications in the MOU. The Operational Creditor requested repayment of the advanced monies on

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## Issues and analysis

### Issue 1: Whether the Operational Creditor established the existence of an operational debt and a default by …

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

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**Reasoning:** The court found that the Operational Creditor provided sufficient evidence, including the

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**Interpretation:** The court interpreted Section 9 of the IBC to mean that if an operational

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**Application:** The court applied the ratio to the facts by noting that the Operational

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Diligent Media…
- **Respondents:** Datalink Multi…

## Timeline

- **2019-04-01 — MOU Exec…**: Memorandum of Understanding (MOU) executed between Diligent Media Corporation Limited and…
- **2019-09-01 — Deferred P…**: Parties agreed to defer the payment of…

## 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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