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IBC

Whether Claim Of License Fee For Use And Occupation Of Immovable Premises Is An Operational Debt U/S 5(21), IBC? : NCLAT Refers To Larger Bench To Consider

LIVELAW NEWS NETWORK
11 March 2022 3:27 AM GMT
Whether Claim Of License Fee For Use And Occupation Of Immovable Premises Is An Operational Debt U/S 5(21), IBC? :  NCLAT Refers To  Larger Bench To Consider
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The Principal Bench of the NCLAT in a Bench consisting of Justice Ashok Bhushan, Chairperson, Dr. Ashok Kumar Mishra and Dr. Alok Srivastava, Technical Members in Jaipur Trade Expocentre Pvt. Ltd. v. Metro Jet Airways Training Pvt. Ltd. referred the issue of whether the claim of the Licensor for payment of License Fee for use and occupation of Immovable Premises for commercial purposes is...

The Principal Bench of the NCLAT in a Bench consisting of Justice Ashok Bhushan, Chairperson, Dr. Ashok Kumar Mishra and Dr. Alok Srivastava, Technical Members in Jaipur Trade Expocentre Pvt. Ltd. v. Metro Jet Airways Training Pvt. Ltd. referred the issue of whether the claim of the Licensor for payment of License Fee for use and occupation of Immovable Premises for commercial purposes is a claim of 'Operational Debt' within the meaning of Section 5(21) of the Code to a larger bench of 5 members for consideration.

The judgment of 7th March 2022 of the NCLAT referred two questions for consideration before the 'Larger Bench' of 3 judges, which was constituted in the present case. The questions raised were as follows:

i. Whether the Judgment of this Tribunal in Company Appeal (AT) (Ins.) No. 331 of 2019 in the matter of 'Mr. M. Ravindranath Reddy Vs. Mr. G. Kishan & Ors.' Lays down the correct law.

ii. Whether claim of the Licensor for payment of License Fee for use and occupation of Immovable Premises for commercial purposes is a claim of 'Operational Debt' within the meaning of Section 5(21) of the Code.

The 2-judge Bench on 7th March, 2022 expressed doubts about the correctness of the decision in the case of Mr. M. Ravindranath Reddy Vs. Mr. G. Kishan & Ors.

The three-judge Bench in the present case expressed similar doubts on the judgment in Mr. M. Ravindranath Reddy Vs. Mr. G. Kishan & Ors. on the ground that it did not notice the judgment of the Supreme Court in Mobilox Innovations (P)Ltd. Vs. Kirusa Software (P) Ltd.

The Appellate Tribunal referred the case to a Larger Bench for consideration of the questions framed in the judgement of 7th March, 2022 and placed the matter before the Chairperson to constitute a Larger Bench.

Case Title: Jaipur Trade Expocentre Pvt. Ltd. v. Metro Jet Airways Training Pvt. Ltd

Counsel for the Appellant: Ms. Sanjana Saddy, Mr. Sanyat Lodha and Ms. Harshita Singhal and Hima Bhardwaj, Advocates

Counsel for the Respondent: Mr. Vikrant Arora, Advocate

ClickHere To Read/Download Order

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