Insolvency case: Settlement breached in TV broadcasting dispute

The Tribunal admitted the application under section 9 of the Insolvency and Bankruptcy Code, 2016, filed by a private limited company against a limited company involved in TV broadcasting services for non-payment issues. A settlement agreement was reached but breached by the Corporate Debtor, leading to the revival of the application. The Tribunal appointed an Insolvency Resolution Professional and imposed a moratorium under Section 14(1) of the IBC, prohibiting actions against the Corporate Debtor. Compliance reports were ordered to be submitted, addressing the outstanding payment dispute and insolvency resolution process.

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Issues:
1. Application filed under section 9 of Insolvency and Bankruptcy Code, 2016 for initiating Corporate Insolvency process.
2. Dispute regarding outstanding payment between Applicant and Corporate Debtor.
3. Non-compliance of previous application under section 9.
4. Settlement agreement between parties and subsequent breach by the Corporate Debtor.
5. Request for appointment of Insolvency Resolution Professional and deposit for expenses.
6. Admittance of application and imposition of moratorium under Section 14(1) of the IBC.

Issue 1: Application under section 9 of IBC, 2016
The Applicant, a private limited company, filed an application under section 9 of the Insolvency and Bankruptcy Code, 2016 seeking to initiate Corporate Insolvency process against the Corporate Debtor, a limited company involved in TV broadcasting services. The Applicant alleged non-payment by the Corporate Debtor for goods supplied as per purchase orders, leading to financial disputes.

Issue 2: Dispute over outstanding payment
The Applicant claimed that the Corporate Debtor failed to make payments as per purchase orders, resulting in a total outstanding amount of Rs. 67,67,218.30. The Corporate Debtor disputed the liability, citing discrepancies in the statement of account and contending that the application was barred by principles of res judicata due to a previously dismissed application.

Issue 3: Non-compliance of previous application
A prior application by the Applicant against the Corporate Debtor was dismissed for non-compliance with section 9(3)(c) of the IBC. However, a fresh demand notice was issued under section 8 of the IBC, leading to a subsequent application under section 9 in 2018, which ultimately resulted in a settlement agreement between the parties.

Issue 4: Breach of settlement agreement
After agreeing to a settlement for payment in three installments, the Corporate Debtor failed to honor the third installment, leading to a breach of the settlement agreement. The Applicant sought revival of the application due to this breach, which was allowed by the Tribunal.

Issue 5: Appointment of Insolvency Resolution Professional
In light of the admitted debt by the Corporate Debtor, the Tribunal appointed an Insolvency Resolution Professional and directed the Operational Creditor to deposit funds for expenses related to the insolvency resolution process, in accordance with the regulations.

Issue 6: Admittance of application and imposition of moratorium
The Tribunal admitted the application under section 9(5) of the IBC and imposed a moratorium under Section 14(1), prohibiting certain actions against the Corporate Debtor. The order was communicated to the parties involved, and compliance reports were directed to be submitted to the relevant authorities.

This detailed analysis covers the legal judgment involving various issues related to the application under the Insolvency and Bankruptcy Code, settlement agreements, breach of terms, appointment of an Insolvency Resolution Professional, and the imposition of a moratorium on the Corporate Debtor.

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