# 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-03395. The case involves a Company Petition filed by Treasure Retail Private Limited (Operational…

- **Court:** NCLT
- **Order date:** 12 May 2023
- **Citation:** TCN-2023-NCLT-03395
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/television-home-shopping-network-limited-cp-984-ib-mb-2020-99afe2c3

## 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 distributing and selling home appliances, while the Corporate Debtor operates an e-commerce marketplace. They had an arrangement where the Corporate Debtor would allow the Operational Creditor to sell products on its platform, collect payments, deduct commission, and remit the remaining amount. The Corporate Debtor failed to pay the outstanding 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, seeking to initiate CIRP. 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 Operational Creditor claimed that the Corporate Debtor defaulted on payments, leaving an outstanding amount of Rs. 1,38,68,571/-. The Operational Creditor issued a demand notice under Section 8 of the IBC, but the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a …

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

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**Reasoning:** The court found that the Corporate Debtor admitted to an outstanding payment and failed

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**Interpretation:** The court interpreted Section 9 of the IBC to mean that if an operational debt

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

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

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2019-09-25 — Default…**: The Corporate Debtor…

## 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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