# In the matter of Television Home Shopping Network Limited C.P. 984-IB-MB-2020

> NCLT judgment dated 2023-05-12. Citation: TCN-2023-NCLT-03378. The case involves a Company Petition filed by Treasure Retail Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 12 May 2023
- **Citation:** TCN-2023-NCLT-03378
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/television-home-shopping-network-limited-cp-984-ib-mb-2020-0d6f739a

## Summary

### Background

The case involves a Company Petition filed by Treasure Retail Private Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Television Home Shopping Network Limited (Corporate Debtor) for an operational debt of Rs. 1,38,68,571/-. The Operational Creditor is in the business of distribution, marketing, and sale of Home Appliances. The Corporate Debtor operates an e-commerce marketplace. They had an arrangement where the Corporate Debtor would allow the Operational Creditor to sell its products on its platform, collect payments, deduct commission/fees, and remit the remaining amount.

## Facts

Treasure Retail Private Limited (Operational Creditor) filed a petition against Television Home Shopping Network Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for an unpaid operational debt of Rs. 1,38,68,571/-. The Operational Creditor and Corporate Debtor had an arrangement where the Operational Creditor would sell its products through the Corporate Debtor's e-commerce platform. The Corporate Debtor would collect payments from customers, deduct commission/fees, and remit the remaining amount to the Operational Creditor. The Corporate Debtor failed to remit the full amount, leading to the outstanding debt. The Operational Creditor issued a demand notice under Section 8 of the IBC, which was not responded to. The Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in respect of an Operational Debt as defined under …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court reasoned that the Operational Creditor had provided sufficient evidence,

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**Interpretation:** The interpretation of Section 9 of the IBC and the definition of 'default' is

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**Application:** The court applied the ratio to the facts by noting that the Operational

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## Parties

- **Judges:** Kuldip Kumar…; Prabhat…
- **Appellants:** Treasure Retail…
- **Respondents:** Television Home…

## Timeline

- **2020-01-01 — C.P. Fil…**: Company Petition С.Р.…
- **2019-09-25 — Default…**: Date on which the…

## 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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