Planetcast Media Services Private Limited Vs Sathyadhara Communications Private Limited (NCLT Kochi)
Summary: NCLT, Kochi Bench admitted the Section 9 application filed by Planetcast Media Services Private Limited against Sathyadhara Communications Private Limited and initiated Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed default of Rs.3,41,13,009, comprising principal outstanding of Rs.2,04,77,784 and delayed interest of Rs.1,36,35,225 arising from playout, satellite bandwidth, teleport/uplinking and related services supplied for the Corporate Debtor’s Darshana TV channel.
The parties’ commercial relationship originated in 2014 under an Uplinking Service Agreement and Space Segment Service Contract dated 19.07.2014. These arrangements were subsequently renewed, including on 20.11.2020 for a term extending until 31.12.2023. The Tribunal found that the renewal agreement was in continuation of the original agreement and contained an automatic renewal mechanism. It noted that monthly invoices continued to be raised and received and that the Corporate Debtor continued to use the services without contemporaneous objection. Consequently, non-execution of a fresh formal agreement after 31.12.2023 did not, by itself, invalidate the continuing contractual relationship.
The Corporate Debtor opposed admission principally on the grounds of a pre-existing dispute regarding service quality and invoices, substantial payments allegedly not properly accounted for, proceedings under Section 138 of the Negotiable Instruments Act, the existence of an arbitration clause, incorrect date of default, and lack of proper authority for institution of the petition. It contended that the IBC could not be used as a substitute for debt recovery.
