# In the matter of Siti Vision Digital Media Private Limited Company Petition No. (IB)-980(ND)2020

> NCLT judgment dated 2023-06-08. Citation: TCN-2023-NCLT-03031. Viswaroopa Info Services India Private Limited, the operational creditor, filed an application…

- **Court:** NCLT
- **Order date:** 8 Jun 2023
- **Citation:** TCN-2023-NCLT-03031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/siti-vision-digital-media-private-limited-company-petition-no-ib-980nd2020-7bf4ae4b

## Summary

### Background

Viswaroopa Info Services India Private Limited, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against SITI Visions Digital Media Private Limited, the corporate debtor. The application was initially reserved but later de-reserved due to incompleteness. The applicant provides optical fiber cable network services, while the respondent operates a cable television network. Agreements were in place for the respondent to use the applicant's infrastructure for a monthly fee. The applicant claimed default in payments, leading to the application for CIRP.

## Facts

Viswaroopa Info Services India Private Limited (operational creditor) filed an application under Section 9 of the IBC against SITI Visions Digital Media Private Limited (corporate debtor) for unpaid operational debt. The operational creditor provides optical fiber cable services, and the corporate debtor operates a cable television network. They had agreements for the corporate debtor to use the operational creditor's infrastructure for a monthly fee. The operational creditor claimed a default of Rs. 2,78,50,347 as of May 31, 2020, including principal and interest. The corporate debtor argued that the applicant and respondent were related parties because Ms. M. Sujatha, a director of the operational creditor, is the wife of the Managing Director of the corporate

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## Issues and analysis

### Issue 1: Whether the Applicant and Respondent are related …

**Ratio:** Section 5(24) of the IBC defines 'related party' in relation to a corporate debtor. The

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**Reasoning:** The court found that none of the directors of the Applicant Company is a Director/Manager

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**Interpretation:** The court interpreted Section 5(24) to require a direct connection between the

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**Application:** The court applied the definition of 'related party' to the facts, noting that

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## Parties

- **Judges:** BACHU VENKAT…; L. N. G…
- **Appellants:** Viswaroopa Info…
- **Respondents:** SITI Visions…
- **Advocates:** P. Na…; Harshal…; +5 more

## Timeline

- **2022-05-25 — Previous H…**: Application was previously heard and reserved by the predecessor Bench of this…
- **2022-06-03 — Matter De-r…**: The matter was de-reserved vide order dated 03.06.2022, as the application was incomplete…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(24) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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