# In the matter of Yibeal Tradex Private Limited

> NCLT judgment dated 2024-05-22. Citation: TCN-2024-NCLT-01290. Visun Services LLP, the operational creditor/applicant, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 22 May 2024
- **Citation:** TCN-2024-NCLT-01290
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/yibeal-tradex-private-limited-0718461b

## Summary

### Background

Visun Services LLP, the operational creditor/applicant, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against YibealTradex Private Limited, the corporate debtor/respondent. The applicant and respondent entered into a franchisee agreement where the applicant was to sell the respondent's products on e-commerce marketplaces. Disputes arose regarding the payment of commissions and the buyback of unsold goods, leading to the filing of this petition.

## Facts

Visun Services LLP (Applicant) and YibealTradex Private Limited (Respondent) entered into a franchisee agreement on May 3, 2021, where Visun would sell YibealTradex's products on e-commerce platforms like Flipkart. Visun was entitled to a 21% annual commission on the purchase price of goods. YibealTradex agreed to buy back unsold goods from Visun at a 21% markup if they weren't sold within 60 days. Visun transferred Rs. 90 Lakh in May 2021 to purchase goods. YibealTradex requested short-term funding to meet targets for sales events. Visun provided an additional Rs. 2 Crore until December 31, 2021. The total amount claimed to be in default was Rs. 3,67,03,813 as of July 15, 2022. A statutory notice was issued by Visun on July 19, 2022, demanding outstanding dues, which

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating …

**Ratio:** The ratio is based on Section 9 of the IBC, which allows an operational creditor to

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**Reasoning:** The court reasoned that the applicant, Visun Services LLP, had demonstrated that Yibeal

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**Interpretation:** Section 9 of the IBC is interpreted to mean that an operational creditor can

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**Application:** The court applied this ratio to the facts by finding that Visun Services LLP

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## Parties

- **Judges:** BIDISHA BA…; SHRI. BALRA…
- **Appellants:** Visun Servi…
- **Respondents:** YIBEAL TRADEX…; YibealTradex…
- **Advocates:** Rishav Ba…; Prerna…; +3 more

## Timeline

- **2021-05-03 — Franchise Ag…**: Visun Services LLP and YibealTradex Private…
- **2021-05-01 — Initial Tran…**: Visun Services LLP transferred Rs. 90 Lakh to YibealTradex Private Limited for purchasing…

## 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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