# In the matter of Madurai Krishna Network Private Limited CP(IB)-290(CHE)-2021

> NCLT judgment dated 2022-07-22. Citation: TCN-2022-NCLT-01600. The case involves an application filed by Jiangsu Yinhe Electronics Co. Ltd, the Operational…

- **Court:** NCLT
- **Order date:** 22 Jul 2022
- **Citation:** TCN-2022-NCLT-01600
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/madurai-krishna-network-private-limited-cpib-290che-2021-63937cd7

## Summary

### Background

The case involves an application filed by Jiangsu Yinhe Electronics Co. Ltd, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Madurai Krishna Network Private Limited, the Corporate Debtor. The Operational Creditor claimed a default of USD 6,38,157/- for the supply of 66,000 DIGITALHD Set Top Boxes (STBs). The Corporate Debtor admitted to procuring the STBs but contended that they were procured on behalf of Akshaya Diginet Cable Vision Private Limited (Akshaya), who failed to make payments. The Corporate Debtor also claimed a pre-existing dispute and that the application was not maintainable.

## Facts

Jiangsu Yinhe Electronics Co. Ltd (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Madurai Krishna Network Private Limited (Corporate Debtor) for a default of USD 6,38,157/-. The debt arose from the supply of 66,000 DIGITALHD Set Top Boxes (STBs) ordered by the Corporate Debtor via a purchase order dated 01.10.2018. The agreement stipulated 15% advance payment and 85% payment within 180 days of delivery. The Operational Creditor supplied the STBs and raised invoices between February and June 2019. The Corporate Debtor paid only USD 1,20,150/-, leaving a balance of USD 6,38,157/- unpaid. The Operational Creditor issued a demand notice under Section 8(1) of the I&B Code on 23.08.2021. The Corporate Debtor

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## Issues and analysis

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

**Ratio:** Section 9(5) of the IBC, 2016 states that the Adjudicating Authority shall admit the

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**Reasoning:** The court considered the documents and submissions of both parties and determined that

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a

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**Application:** The court applied Section 9(5) of the IBC to the facts and found that the

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## Parties

- **Judges:** (Retd.) S.…; SAMEER…
- **Appellants:** Jiangsu Yinhe…
- **Respondents:** MADURAI KRISHNA…

## Timeline

- **2018-10-01 — Purchase…**: Corporate Debtor ordered 66,000 pieces of DIGITALHD Set Top Box (STB) from the…
- **2019-02-18 — First Shi…**: First shipment of STBs sent…

## 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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