# In the matter of Somesh Choudhary,
Vs. Knight Riders Sports Private Limited & Anr. Company Appeal (AT) (Insolvency) No. 501 of 2021

> NCLAT judgment dated 2022-08-18. Citation: TCN-2022-NCLAT-00280. The appeal was filed by Somesh Choudhary, the suspended director of Global Fragrances Private…

- **Court:** NCLAT
- **Order date:** 18 Aug 2022
- **Citation:** TCN-2022-NCLAT-00280
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/somesh-choudhary-vs-knight-riders-sports-private-limited-anr-company-appeal-c8803ca0

## Summary

### Background

The appeal was filed by Somesh Choudhary, the suspended director of Global Fragrances Private Limited ('Corporate Debtor'), against the order dated 05.07.2021 passed by the National Company Law Tribunal (NCLT), New Delhi, in C.P. (IB) No.- 1112/ND/2018. The NCLT admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('The Code') filed by Knight Riders Sports Private Limited ('Operational Creditor') regarding non-payment of Minimum Guaranteed Royalties as compensation in lieu of a Licensing Agreement.

## Facts

Somesh Choudhary, the suspended director of Global Fragrances Private Limited ('Corporate Debtor'), filed an appeal against the admission of a Section 9 application by Knight Riders Sports Private Limited ('Operational Creditor'). The dispute arose from a Licensing Agreement where the Corporate Debtor was granted exclusive rights to use the trademark 'Kolkata Knight Riders' ('KKR') for manufacturing and distributing licensed products. The Operational Creditor raised invoices for Minimum Guaranteed Royalties, but the Corporate Debtor failed to make full payments. The Corporate Debtor made partial payments and issued post-dated cheques, which were later dishonored. The Operational Creditor sent reminders and issued a legal notice and a demand notice under Section 8 of

…

## Issues and analysis

### Issue 1: Whether the amounts claimed by the first Respondent fall within the definition of 'Operational …

**Ratio:** The definition of 'Operational Debt' under Section 5(21) of the Code includes claims in

…

**Reasoning:** The court reasoned that the Respondent permitted the Corporate Debtor to use intellectual

…

**Interpretation:** The court interpreted Section 5(21) of the Code to include claims arising from

…

**Application:** The court applied the ratio to the facts of the case, finding that the claim

…

## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** Somesh Cho…
- **Respondents:** Global Fragrances…; Knight Riders…
- **Advocates:** Aditya S…; Vishal Ge…; +4 more

## Timeline

- **2014-03-03 — License Agreem…**: A License Agreement was entered into between the 'Corporate Debtor' and the first…
- **2015-06-15 — Partial Payment by…**: The 'Corporate Debtor' made the payment…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/somesh-choudhary-vs-knight-riders-sports-private-limited-anr-company-appeal-c8803ca0