ORDER

Per: Kishore Vemulapalli, Member Judicial

1. This is an Application being C.P. (IB) No. 1149/MB/C-IV/2020 filed on 14-07-2020 by Leo Meridian Infrastructure Projects & Hotels Limited, the Operational Creditor/Applicant, under section 9 of Insolvency & Bankruptcy Code, 2016 (I&B Code) against Cinema Venture Private Limited, Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP).

1.1 M/s Leo Meridian Infrastructure Projects & Hotels Limited, the Operational Creditor has been undergoing Corporate Insolvency Resolution Process vide Order dated 09.04.2019 passed by Hon’ble NCLT, Hyderabad in the matter of CP (IB) No. 43/7/HDB/2018 and Mr. Raj Kumar Ralhan has been appointed as a Resolution professional for the Operational Creditor, vide order dated 13/06/2019 passed by Hon’ble NCLT, Hyderabad in I.A. No. 459/2019 in CP (IB) No. 43/7/HDB/2018. The present Application has been filed by the Resolution Professional of Operational Creditor having authority to file the same under the Code.

1.2 The total amount claimed by the Operational Creditor in the Part IV of the Company Petition is Rs. 1,61,94,427.69 (Rupees One Crore Sixty One Lakhs Ninety Four Thousand four Hundred Twenty Seven and Sixty Nine Paise Only) as on 13/07/2020 alongwith interest thereon till payment /actual realisation.

1.3 The date of default as mentioned in the Part IV of the Application is 23.05.2019 (the date of the invoice immediately after the last payment received from Cinema Ventures Private Limited) and the last bill was dated 21.02.2020.

2 The Applicant submits that, the Operational Creditor entered into a Management Agreement with Reliance Mediaworks Limited (RMWL) (the predecessor company to the current Corporate Debtor, Cinema Ventures Private Limited) on 20.06.2014, wherein Cinema Ventures Private Limited was granted the right to operate and manage a multiplex theatre admeasuring 60,510 sq. ft. super built up area and 32,040 sq. ft. covered area and comprising of three (3) screens from June 2014 ("Multiplex Theatre") in operational creditor’s premises. The said Management Agreement provided that the revenues generated from the Multiplex Theatre and associated retail activities shall be shared between the Operational Creditor and Cinema Ventures Private Limited (Corporate Debtor).

2.1 The Operational Creditor raised 95 invoices/Debit Notes as per the terms and conditions of the Management Agreement and the payments , after deducting TDS, were made by the Corporate Debtor in the bank account of Operational Creditor in IDFC First Bank Limited at Hyderabad, Telangana - 500038.

2.2 The present operational debt occurs from 23.05.2019 to 21.02.2020. The Operational Creditor raised 95 invoices for the services provided by the Operational Creditor amounting to Rs.1,80,40,318.09 (One Crore Eighty Lakhs Forty Thousand Three Hundred and Eighteen Rupees and Nine Paise Only), which together with opening balance as on 01.04.2019 (Admitted in letter dated 14/09/2019) amounting to Rs.13,53,590.87 (Thirteen Lakhs Fifty Three Thousand Five Hundred and Ninety Rupees and Eighty Seven Paise Only), makes total sum of Rs.1,93,93,908.96 (One Crore Ninety-Three lakhs Ninety- Three Thousand Nine Hundred and Eight Rupees and Ninety-Six Paise Only) as on 13.07.2020 out of which 12 invoices were duly paid and 13th invoice was partially paid and 82 invoices stand unpaid till date.

2.3 That the Corporate Debtor, out of the total invoices have paid/or adjusted a sum of Rs. 55,93,273/- (Rupees Fifty-Five Lakhs Ninety- Three Thousand Two Hundred and Seventy-Three Only) to the Operational Creditor. After adjusting this amount, a balance of Rs. 1,38,00,635.96/- (Rupees One Crore Thirty- Eight Lakhs Six Hundred Thirty Five and Ninety-Six Paise Only) remained to be paid to the Operational Creditor for the services provided by the Operational Creditor as on 13/07/2020. The Interest @ 24% p.a. (being the contractual rate of interest as per Invoice/ Debit notes) is Rs. 23,93,