# In the matter of Topaki Media Private Limited

> NCLT judgment dated 2023-08-10. Citation: TCN-2023-NCLT-02101. Rajasthan Patrika Private Limited filed a Company Petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 10 Aug 2023
- **Citation:** TCN-2023-NCLT-02101
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/topaki-media-private-limited-13f46e89

## Summary

### Background

Rajasthan Patrika Private Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Topaki Media Private Limited, claiming an operational debt of Rs. 2,16,57,227/- (including principal and interest). The operational creditor, Rajasthan Patrika, provided advertisement services to the corporate debtor, Topaki Media. The corporate debtor acknowledged the services and raised invoices, but failed to make payments. The operational creditor issued a demand notice, but the corporate debtor failed to reply. The corporate debtor contended that there was an agreement between the operational creditor, the corporate debtor, and Videocon Group, where Videocon would directly

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## Facts

Rajasthan Patrika Private Limited (Operational Creditor) filed a petition against Topaki Media Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming an operational debt of Rs. 2,16,57,227/-. The debt arose from advertisement services provided by Rajasthan Patrika to Topaki Media. Rajasthan Patrika published advertisements in its newspaper based on purchase orders/release orders from Topaki Media and raised invoices accordingly. The invoices remained unpaid, totaling Rs. 1,36,81,274/-. Rajasthan Patrika issued a demand notice dated 31.07.2018 under Section 8 of the Code. Topaki Media acknowledged the debt in emails and offered a barter arrangement involving Videocon Group, where Videocon would provide appliances to

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## Issues and analysis

### Issue 1: Whether the Respondent i.e., Topaki Media Private Limited is liable to pay the outstanding dues to …

**Ratio:** The legal principle applied is that a corporate debtor is liable for debts arising from

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**Reasoning:** The NCLT reasoned that the release orders for procurement of services were issued by

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**Interpretation:** The interpretation is that the Corporate Debtor cannot shift its liability to a

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**Application:** The ratio and reasoning were applied to the facts by noting that Topaki Media

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** Rajasthan Patrika…
- **Respondents:** ΤΟΡΑΚΙ MEDIA…

## Timeline

- **2018-07-31 — Demand Notice…**: Rajasthan Patrika issued a demand notice to…
- **2023-04-11 — Videocon Industries…**: NCLT Mumbai admitted Videocon…

## 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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