# In the matter of Anup Sushil Dubey Suspended Board Member Umarai Worldwide (P) Ltd Vs. National Agriculture Co-operative Marketing Federation of India Ltd.  and Anr. CA(AT)(Ins)No. 229 of 2020

> NCLAT judgment dated 2020-10-07. Citation: TCN-2020-NCLAT-00094. This case involves an appeal against the order dated 20.12.2019 passed by the National…

- **Court:** NCLAT
- **Order date:** 7 Oct 2020
- **Citation:** TCN-2020-NCLAT-00094
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/anup-sushil-dubey-suspended-board-member-umarai-worldwide-p-ltd-vs-national-agri-85b303cb

## Summary

### Background

This case involves an appeal against the order dated 20.12.2019 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which admitted an application filed by National Agriculture Co-operative Marketing Federation of India Ltd. (NAFED), the Operational Creditor, against Umarai Worldwide Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC). The dispute arose from a Leave and Licence Agreement for the usage of cold storage facilities.

## Facts

NAFED and Umarai Worldwide Private Limited entered into a Leave and Licence Agreement on 01.10.2015 for cold storage facilities for three years. The agreement stipulated a monthly license fee of Rs. 9,31,000 with a 10% increase after 12 months and a 21% p.a. interest on delayed payments. Umarai defaulted on payments from September 2017, leading to an outstanding amount of Rs. 2,14,14,560. NAFED issued a demand notice on 26.09.2018 under Section 8 of the I&B Code for Rs. 1,83,45,278. Umarai denied the claims on 10.11.2018 and sought renewal of the agreement. NCLT admitted NAFED's application, leading to Umarai's appeal. Umarai argued that the debt was for a period after the agreement's termination, a pre-existing dispute existed, and the NCLT passed an ex-parte

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## Issues and analysis

### Issue 1: Whether dues, if any, arising from the ‘Leave and Licence Agreement' is construed as an …

**Ratio:** The Hon'ble Supreme Court in Mobilox Innovations Private Limited V/s. Kirusa Software

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**Reasoning:** The tribunal considered the definition of 'Service' under Section 2(42) of the Consumer

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**Interpretation:** The term 'Operational Debt' under Section 5(21) of the I&B Code includes

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**Application:** In this case, the tribunal found that the lease rentals arising out of the use

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## Parties

- **Judges:** Venugop…; Shreesha…
- **Appellants:** Anup Sushil…
- **Respondents:** Umarai Worldwide…; National Agricultu…
- **Advocates:** Sanjay K.…; Shradha A…; +5 more

## Timeline

- **2015-10-01 — Agreement…**: NAFED and Umarai Worldwide Private Limited entered into a Leave and Licence Agreement for…
- **2017-09-01 — Default on P…**: Umarai Worldwide Private Limited…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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