# In the matter of Jaipur Trade Expocentre Private Limited
Vs.
M/s Metro Jet Airways Training Private Limited Company Appeal (AT) (Insolvency) No. 423 of 2021

> NCLAT judgment dated 2022-07-05. Citation: TCN-2022-NCLAT-00686. The appeal arises from an order dated 04.03.2020 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 5 Jul 2022
- **Citation:** TCN-2022-NCLAT-00686
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jaipur-trade-expocentre-private-limited-vs-ms-metro-jet-airways-training-private-f6cca039

## Summary

### Background

The appeal arises from an order dated 04.03.2020 passed by the Adjudicating Authority (National Company Law Tribunal), Jaipur Bench, dismissing a Section 9 application. 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 the use of premises. Disputes arose regarding the payment of license fees, leading to the Section 9 application.

## Facts

Jaipur Trade Expocentre Private Limited (Appellant) and M/s Metro Jet Airways Training Private Limited (Respondent) entered into a license agreement on 15.04.2017.

The license agreement granted the respondent the right to use an Admin Building with a super area of 31000 Sq. Ft. for running an educational establishment.

The agreed license fee was Rs.4,00,000/- per month plus government taxes.

The respondent defaulted in payment of license fees, and several cheques issued for part payment were dishonored.

The appellant issued a demand notice under Section 8 of the IBC for total dues of Rs.1,31,20,788/-.

The respondent initiated civil proceedings before Sanganer Court, Jaipur, after receiving the demand notice.

…

## Issues and analysis

### Issue 1: Whether the claim for unpaid license fees constitutes an 'operational debt' under Section 5(21) of …

**Ratio:** The claim for unpaid license fees for the use of demised premises for business purposes

…

**Reasoning:** The license agreement constitutes a provision of service, and the definition of

…

**Interpretation:** The term 'operational debt' should be interpreted broadly to include claims

…

**Application:** In this case, the unpaid license fees constitute an operational debt because

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## Parties

- **Judges:** Ashok Bh…; Rakesh Kuma…; +3 more
- **Appellants:** Jaipur Trade…
- **Respondents:** M/S METRO JET…
- **Advocates:** Sanjana…; Sanyat…; +3 more

## Timeline

- **2017-04-15 — Agreement…**: Agreement between Jaipur Trade Expocentre Private Limited and M/s Metro Jet Airways…
- **2017-06-01 — Effective…**: Licensee took the premises for the purposes of running an Educational Establishment with…

## 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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