# In the matter of FAIRSTREET SPORTS PRIVATE LIMITED

> NCLT judgment dated 2025-05-09. Citation: TCN-2025-NCLT-00081. The Operational Creditor, Jaiprakash Associates Limited, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 9 May 2025
- **Citation:** TCN-2025-NCLT-00081
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fairstreet-sports-private-limited-01e0934a

## Summary

### Background

The Operational Creditor, Jaiprakash Associates Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Fairstreet Sports Private Limited, the Corporate Debtor. The application was based on outstanding dues amounting to Rs. 18,22,11,629/- with the date of default being 24.07.2023. The Corporate Debtor had approached the Operational Creditor with a proposal to organize the MotoGP race annually from 2023 to 2029 at the Buddh International Circuit (BIC), leading to the execution of a Memorandum of Understanding (MoU) on 20.06.2023. The Operational Creditor provided services and infrastructure as per the MoU, but the Corporate Debtor was irregular in making payments.

## Facts

Jaiprakash Associates Limited (Operational Creditor) and Fairstreet Sports Private Limited (Corporate Debtor) entered into a Memorandum of Understanding (MoU) on 20.06.2023, for organizing the MotoGP race annually from 2023 to 2029 at the Buddh International Circuit (BIC). As per the MoU, the Operational Creditor was to provide services and infrastructure, and the Corporate Debtor was to make payments as per the agreed terms. The Operational Creditor raised invoices and debit notes for the services provided. The Corporate Debtor made partial payments but defaulted on the outstanding amount. The first invoice, dated 22.07.2023, for Rs. 3,61,08,000/-, had a remaining outstanding of Rs. 1,61,08,000/-. The total outstanding amount, including other invoices and debit notes,

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## Issues and analysis

### Issue 1: Whether there is a debt and default as per …

**Ratio:** Section 3(11) of the Code defines 'debt'. Section 4 specifies the minimum threshold for

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**Reasoning:** The Tribunal found that the Corporate Debtor had failed to make payments for the invoices

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**Interpretation:** The Tribunal interpreted the invoices and debit notes as evidence of a debt

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**Application:** The Tribunal applied the definition of 'debt' under Section 3(11) to the

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## Parties

- **Judges:** Reeta K…; Ashish…
- **Appellants:** Jaiprakash…
- **Respondents:** Fairstreet Sports…
- **Advocates:** Gunjan Ja…; Anoop R…; +4 more

## Timeline

- **2023-06-20 — MoU Exec…**: Jaiprakash Associates Limited and Fairstreet Sports Private Limited execute a Memorandum…
- **2023-07-22 — First In…**: Operational Creditor raises the first…

## 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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