# In the matter of Tanish Nirmiti LLP

> NCLT judgment dated 2023-07-31. Citation: TCN-2023-NCLT-02267. The case originates from an application filed by Indiabulls Distribution Services Limited, the…

- **Court:** NCLT
- **Order date:** 31 Jul 2023
- **Citation:** TCN-2023-NCLT-02267
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tanish-nirmiti-llp-5ad724eb

## Summary

### Background

The case originates from an application filed by Indiabulls Distribution Services Limited, the Operational Creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against Tanish Nirmiti LLP, the Corporate Debtor. The Operational Creditor claimed a total outstanding amount of Rs.13,60,073/- along with 18% interest per annum. The date of default was mentioned as 31.03.2017, and the petition was filed on 14.03.2020, within the period of limitation. The Corporate Debtor is a Limited Liability Partnership firm. The Operational Creditor and the Corporate Debtor entered into an agreement dated 29.08.2016, where the Corporate Debtor authorized the Operational Creditor to act as a marketing

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## Facts

Indiabulls Distribution Services Limited (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate CIRP against Tanish Nirmiti LLP (Corporate Debtor) for an outstanding amount of Rs. 13,60,073/- with 18% interest p.a. The default date was 31.03.2017. The petition was filed on 14.03.2020. The Operational Creditor and Corporate Debtor had an agreement dated 29.08.2016, where the Operational Creditor acted as a marketing representative for the Corporate Debtor's real estate project "Falcon". The Corporate Debtor requested DCB Bank for NoC for the agreement on 22.08.2016. The Corporate Debtor agreed to auto-transfer receivables from an Escrow Account to the Operational Creditor's account. The

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## Issues and analysis

### Issue 1: Whether there exists an operational debt and …

**Ratio:** The Insolvency and Bankruptcy Code, 2016 defines 'operational debt' as a debt in respect

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**Reasoning:** The Adjudicating Authority perused the records and found that the Corporate Debtor had

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**Interpretation:** The term 'operational debt' is interpreted broadly to include debts arising

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**Application:** In this case, the outstanding amount for marketing services provided by the

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## Parties

- **Judges:** Kuldip Kumar…; ANURADHA SANJAY…
- **Appellants:** INDIABULLS…
- **Respondents:** TANISH NIRM…

## Timeline

- **2016-08-29 — Agreement…**: The Operational Creditor and the…
- **2016-08-22 — Corporate Debto…**: The Corporate Debtor requested DCB Bank to…

## 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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