# In the matter of Jaipur Trade Expocentre Private Limited Vs. Metro Jet AIrways Trading Private Limited Company Appeal (AT)(Insolvency) No. 423 of 2021

> NCLAT judgment dated 2022-03-07. Citation: TCN-2022-NCLAT-00597. The appeal arises from an order dated 04.03.2020 passed by the National Company Law Tribunal,…

- **Court:** NCLAT
- **Order date:** 7 Mar 2022
- **Citation:** TCN-2022-NCLAT-00597
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jaipur-trade-expocentre-private-limited-vs-metro-jet-airways-trading-private-lim-b5e4f0fc

## Summary

### Background

The appeal arises from an order dated 04.03.2020 passed by the National Company Law Tribunal, Jaipur Bench, which rejected an application filed by the appellant under Section 9 of the Insolvency and Bankruptcy Code, 2016. The appellant, Jaipur Trade Expocentre Private Limited, had entered into a license agreement with the respondent, M/S Metro Jet Airways Training Private Limited, for premises used for running an educational establishment. The appellant claimed outstanding dues as operational debt, which the Adjudicating Authority rejected, leading to the present appeal.

## Facts

Jaipur Trade Expocentre Private Limited (Appellant) entered into a ‘Licence Agreement' with M/S Metro Jet Airways Training Private Limited (Respondent/Corporate Debtor) on April 15, 2017, for premises located at SP-10, Sitapur Industrial Area, Phase 4 Jaipur. The premises were to be used by the Corporate Debtor for running an Educational Establishment at a license fee of Rs. 4 Lacs per month. The license was granted for an initial period of 5 years, from June 1, 2017, to May 31, 2022. The Appellant received partial payments from the Corporate Debtor for outstanding license fees in November 2017. Two cheques issued by the Corporate Debtor, one dated May 7, 2018, and another dated October 8, 2018, each for Rs. 20 Lacs, were dishonored. Despite reminders, the Corporate

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## Issues and analysis

### Issue 1: Whether the license fee pertaining to immovable premises taken by a licensee from a licensor for …

**Ratio:** The definition of “Operational Debt” is contained in Section 5(21) of the Code. The

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**Reasoning:** The Adjudicating Authority held that the claim arising out of grant of licence to use

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**Interpretation:** The interpretation hinges on whether the licensing of immovable property for

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**Application:** The NCLAT acknowledged conflicting opinions within the tribunal regarding

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…
- **Appellants:** Jaipur Trade…
- **Respondents:** M/S METRO JET…
- **Advocates:** Sanjana…; Sanyat…; +2 more

## Timeline

- **2017-04-15 — Licence Agr…**: Jaipur Trade Expocentre Private Limited entered into a ‘Licence Agreement' with M/S Metro…
- **2017-06-01 — License Comme…**: The license was granted for an initial period of 5 years commencing from 1st June, 2017…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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