# In the matter of Explo Media Private Limited

> NCLT judgment dated 2022-02-08. Citation: TCN-2022-NCLT-04217. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 8 Feb 2022
- **Citation:** TCN-2022-NCLT-04217
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/explo-media-private-limited-58be8a75

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by T&D Hospitality India LLP (Operational Creditor) against Explo Media Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor failed to pay an outstanding operational debt of Rs. 14,57,360/- along with interest at 18% per annum. The debt arose from the supply of headrest covers to Air India Limited, as per the instructions of the Corporate Debtor. The Corporate Debtor contested the application, alleging a pre-existing dispute regarding the quality of the supplied goods and disputing the service of the statutory demand notice.

## Facts

T&D Hospitality India LLP (Operational Creditor) filed a petition against Explo Media Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for an unpaid operational debt. The debt of Rs. 14,57,360/- plus interest arose from the supply of headrest covers to Air India Limited, as per the Corporate Debtor's instructions. The Operational Creditor claimed that the Corporate Debtor failed to pay the outstanding amount despite the supply of goods. The Corporate Debtor argued that there was a pre-existing dispute regarding the quality of the supplied goods and that the demand notice was not properly served. The Corporate Debtor claimed that the goods supplied were defective, leading to complaints from their clients, including

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## Issues and analysis

### Issue 1: Whether the demand notice under Section 8 of the IBC, …

**Ratio:** Rule 5 of the IBBI (Application to Adjudicating Authority) Rules, 2016, allows for the

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**Reasoning:** The court observed that the demand notice was sent to the corporate office of the

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**Interpretation:** The court interpreted Rule 5 of the IBBI (Application to Adjudicating

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**Application:** The court applied the ratio to the facts by noting that the demand notice was

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** T&D HOSPITALITY…
- **Respondents:** EXPLO MEDIA…

## Timeline

- **2018-02-01 — Corporate Debtor…**: Around February-March 2018, the Corporate Debtor approached the Operational Creditor for…
- **2019-08-19 — Letter of Au…**: Air India Limited issued a letter of Authority dated 19.08.2019 in the name of Corporate…

## 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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