# In the matter of Swiss Entertainment Pvt.  Ltd. C.P. (IB)- 1374 (MB)-2019

> NCLT judgment dated 2022-10-14. Citation: TCN-2022-NCLT-00732. The case originates from a Company Petition filed by Epigram, an Operational Creditor, seeking…

- **Court:** NCLT
- **Order date:** 14 Oct 2022
- **Citation:** TCN-2022-NCLT-00732
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/swiss-entertainment-pvt-ltd-cp-ib-1374-mb-2019-51c6accb

## Summary

### Background

The case originates from a Company Petition filed by Epigram, an Operational Creditor, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Swiss Entertainment Pvt. Ltd., the Corporate Debtor, for alleged default in payment for services rendered. The Operational Creditor provided services such as publicity design, film announcements, and print advertisement campaigns. The Corporate Debtor allegedly failed to pay a principal sum of Rs. 44,00,168 along with interest amounting to Rs. 11,24,704 until March 29, 2019, totaling Rs. 55,38,347. The Operational Creditor issued a demand notice on August 2, 2018, to which the Corporate Debtor replied on August 9, 2018, claiming a pre-existing dispute regarding the quality of work.

## Facts

Epigram, the Operational Creditor, provided publicity design, film announcement, and print advertisement campaign services to Swiss Entertainment Pvt. Ltd., the Corporate Debtor. The Corporate Debtor allegedly defaulted on payments totaling Rs. 55,38,347, including principal and interest. The Operational Creditor sent a demand notice on August 2, 2018. The Corporate Debtor replied on August 9, 2018, claiming a pre-existing dispute regarding the quality of work. The Operational Creditor sent a letter on March 7, 2018, demanding payment of Rs. 36,75,680. The Corporate Debtor responded on March 17, 2018, raising disputes about the quality of work and withholding of social media accounts. The Operational Creditor filed a Company Petition on April 2, 2019. The Corporate

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute existed between the Operational Creditor and the Corporate Debtor …

**Ratio:** The existence of a genuine dispute prior to the issuance of a demand notice is a valid

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**Reasoning:** The court reasoned that the disputes raised by the Corporate Debtor in their letter dated

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**Interpretation:** The legal issue concerns the interpretation of Section 9 of the Insolvency and

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**Application:** In this case, the court applied the ratio to the facts by examining the

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Epig…
- **Respondents:** Swiss Entertainmen…

## Timeline

- **2017-08-28 — Engagement Let…**: Date of the Engagement Letter between the…
- **2017-09-20 — Email Confi…**: Corporate Debtor confirmed the increased…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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