# In the matter of Wakai Hospitality Private Limited vs. Palak Desai & Ors.

> NCLAT judgment dated 2025-05-28. Citation: TCN-2025-NCLAT-00367. Wakai Hospitality Private Limited filed an appeal against the order dated 29.02.2024 passed…

- **Court:** NCLAT
- **Order date:** 28 May 2025
- **Citation:** TCN-2025-NCLAT-00367
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/wakai-hospitality-private-limited-vs-palak-desai-ors-5b58e513

## Summary

### Background

Wakai Hospitality Private Limited filed an appeal against the order dated 29.02.2024 passed by the National Company Law Tribunal, Mumbai Bench-IV, regarding Interim Application No. 5065(MB) of 2023 in Company Petition (I.B) No. 543/MB/2022. The dispute concerns a Leave and License Agreement (LLA) between Wakai Hospitality and Rajmal Lakhichand Jewelers Private Limited (Corporate Debtor).

## Facts

Wakai Hospitality entered into a Leave and License Agreement (LLA) with Rajmal Lakhichand Jewelers Private Limited on 14.07.2022 for commercial premises.

The LLA stipulated a monthly license fee of Rs. 7,50,000 with a 5% annual increment.

Wakai Hospitality was granted a 60-day fit-out period during which no license fees were payable.

Wakai Hospitality received a notice from the Municipal Corporation of Greater Mumbai (MCGM) restraining renovation activities due to lack of requisite permissions.

Wakai Hospitality claimed to have incurred substantial renovation costs and agreed with the Corporate Debtor to adjust these costs against future license fees.

CIRP was initiated against Rajmal Lakhichand Jewelers Private Limited on 09.02.2023.

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority had the jurisdiction to adjudicate disputes arising from the …

**Ratio:** The Adjudicating Authority and the Appellate Tribunal possess the necessary jurisdiction

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**Reasoning:** The agreement in question is in the nature of a lease, the validity of its termination

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**Interpretation:** The Adjudicating Authority has the power to decide upon the termination of

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**Application:** The Adjudicating Authority was competent to adjudicate the dispute regarding

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## Parties

- **Judges:** Naresh Sa…
- **Appellants:** WAKAI HOSPITALITY…
- **Respondents:** Rajmal Lakhichand…; PALAK D…; +1 more
- **Other parties:** State Bank of…; Jalgaon People's…
- **Advocates:** Aditya S…; Samsher…; +9 more

## Timeline

- **2022-07-14 — Leave and License…**: Wakai Hospitality Private Limited entered into a Leave and License Agreement (LLA) with…
- **2023-02-09 — CIRP Init…**: CIRP was initiated against Rajmal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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