Jiostar India Private Limited Vs Absolute Legends Sports Private Limited (NCLT Delhi)
NCLT Rejects Section 9 Plea Due to Unexecuted Agreements Supporting Operational Debt Claim; Insolvency Petition Dismissed as Media Rights Agreements Lacked Authenticity, Rules NCLT; NCLT Holds IBC Cannot Be Invoked as a Recovery Tool for Contractual Dues; Section 9 Application Rejected Due to Doubts Over Existence of Operational Debt; NCLT Refuses CIRP Admission as Foundational Documents Raised Questions of Credibility.
The National Company Law Tribunal (NCLT), New Delhi Bench, considered an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by an operational creditor seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against a corporate debtor for an alleged default of ₹3,59,14,775, along with undeposited TDS. The claim arose from agreements relating to media rights and associated services connected with the Legends League Cricket Masters T20 tournament.
The operational creditor submitted that the parties had entered into a Media Rights Agreement (MRA) dated 16 September 2024 and an Agreement for Airtime Sale dated 18 September 2024 concerning media rights for the 2023–2025 franchise editions and the 2025 regional edition of the tournament. Under these agreements, the operational creditor was granted exclusive television, digital, and ancillary rights and agreed to provide free commercial airtime during live transmissions.
