# In the matter of Gajank Telecommunications & IT
SolutionsPrivate Limited CP (IB) No.561-MB-IV-2021

> NCLT judgment dated 2023-04-12. Citation: TCN-2023-NCLT-03852. Diligent Media Corporation Limited, the Operational Creditor/Applicant, filed an application…

- **Court:** NCLT
- **Order date:** 12 Apr 2023
- **Citation:** TCN-2023-NCLT-03852
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gajank-telecommunications-it-solutionsprivate-limited-cp-ib-no561-mb-iv-2021-6020945e

## Summary

### Background

Diligent Media Corporation Limited, the Operational Creditor/Applicant, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Gajank Telecommunications & IT Solutions Private Limited, the Corporate Debtor. The application was filed due to a default arising from a Memorandum of Understanding (MoU) dated 01.02.2019, where the Corporate Debtor was to provide residential premises to the Operational Creditor. The Operational Creditor had advanced Rs. 7,00,00,000/- on 25.02.2019 to the Corporate Debtor. The date of default was stated as 31.05.2019.

## Facts

Diligent Media Corporation Limited (Operational Creditor) filed an application under Section 9 of the I&B Code to initiate CIRP against Gajank Telecommunications & IT Solutions Private Limited (Corporate Debtor). The application stemmed from a Memorandum of Understanding (MoU) dated 01.02.2019, where the Corporate Debtor was to provide residential premises to the Operational Creditor in Mumbai. The Operational Creditor advanced Rs. 7,00,00,000/- to the Corporate Debtor on 25.02.2019. The MoU contained conflicting clauses regarding the deadline for handing over the premises. Clause 3 stipulated a deadline of 30.05.2019, while clause 2 allowed two years from the date of execution. The Operational Creditor claimed a default date of 31.05.2019. The Operational

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** Section 10A of the Insolvency & Bankruptcy Code places a bar on filing applications

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**Reasoning:** The court reasoned that if the date of default falls within the period specified under

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**Interpretation:** Section 10A provides a temporary suspension of the right to initiate CIRP for

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**Application:** The court applied Section 10A to the facts of the case by determining that the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Diligent Media…
- **Respondents:** Gajank Telecommuni…

## Timeline

- **2019-02-01 — MoU Exec…**: Memorandum of Understanding (MoU) entered between Diligent Media Corporation Limited and…
- **2019-02-25 — Advance P…**: Diligent Media Corporation Limited advanced Rs. 7,00,00,000/- to Gajank…

## 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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