Revenue Sharing Film Production Claim Constitutes Operational Debt

The Mumbai Bench of the National Company Law Tribunal admitted a Section 9 application and held that amounts payable under a film co-production arrangement constituted an operational debt where the petitioner had undertaken production-related activities and provided services for creation and delivery of the film. 

The Tribunal rejected the corporate debtor’s contentions regarding non-existence of operational debt, limitation, and entitlement to set-off, and initiated the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor.