# In the matter of Orienta Cine Advertising Private Limited C.P. (IB)-1270(MB)2020

> NCLT judgment dated 2022-07-11. Citation: TCN-2022-NCLT-01779. The case pertains to a Company Petition filed by INOX Leisure Limited (the Petitioner) against…

- **Court:** NCLT
- **Order date:** 11 Jul 2022
- **Citation:** TCN-2022-NCLT-01779
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/orienta-cine-advertising-private-limited-cp-ib-1270mb2020-69f599c5

## Summary

### Background

The case pertains to a Company Petition filed by INOX Leisure Limited (the Petitioner) against Orienta Cine Advertising Private Limited (the Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Petitioner and Corporate Debtor had an advertising agreement dated 15.05.2018, where the Corporate Debtor was to provide monthly sales details, and the Petitioner would raise monthly invoices. The Corporate Debtor made some ad-hoc payments against these invoices on a first-in, first-out basis. The Corporate Debtor admitted its liability in a letter dated 06.05.2019, acknowledging an outstanding amount of Rs. 9,08,65,117/- as of 31.03.2019. After further payments, a demand notice

…

## Facts

INOX Leisure Limited (Petitioner) and Orienta Cine Advertising Private Limited (Corporate Debtor) entered into an advertising agreement on 2018-05-15. Under the agreement, the Corporate Debtor was to provide monthly sales details, and the Petitioner would raise monthly invoices. The Corporate Debtor made ad-hoc payments, adjusted against invoices on a FIFO basis. The Corporate Debtor acknowledged receipt of all invoices but failed to make full payments. On 2019-05-06, the Corporate Debtor admitted liability of Rs. 90,865,117 as of 2019-03-31. The Corporate Debtor made payments on 2019-11-11, leaving Rs. 79,141,047 outstanding, including 12% interest. The Petitioner issued a demand notice on 2019-11-20, which the Corporate Debtor received but did not reply to.

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on …

**Ratio:** The legal principle is that a default occurs when a debt is due and payable but has not

…

**Reasoning:** The court reasoned that the Corporate Debtor had admitted its liability in writing and

…

**Interpretation:** The interpretation is that an admission of debt coupled with non-payment

…

**Application:** The Corporate Debtor's admission of liability in its letter dated 06.05.2019,

…

## Parties

- **Judges:** ANURADHA SANJAY…; H.V. Subb…
- **Appellants:** INOX Leisure…
- **Respondents:** Orienta Cine…
- **Advocates:** Kareena Tahilraman…; Hetal M…

## Timeline

- **2018-05-15 — Advertising A…**: Petitioner and Corporate Debtor…
- **2019-03-31 — Debt Acknowl…**: Corporate Debtor admitted…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/orienta-cine-advertising-private-limited-cp-ib-1270mb2020-69f599c5