# In the matter of Cals Refineries Ltd. (IB)-447-(ND)-2017

> NCLT judgment dated 2017-11-23. Citation: TCN-2017-NCLT-00142. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Nov 2017
- **Citation:** TCN-2017-NCLT-00142
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cals-refineries-ltd-ib-447-nd-2017-6f63b33b

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by M/s. Seth Thakurdas Khinvraj Rathi (Operational Creditor) against M/s. Cals Refineries Ltd. (Corporate Debtor) for an unpaid operational debt of Rs. 1,08,75,799/-. The Operational Creditor had permitted the Corporate Debtor to use its premises in Mumbai under a Leave & Licence Agreement and a Licence and Hire Charges Agreement, both dated 10.3.2008, for a period of 5 years. Disputes arose regarding unpaid dues, leading to various legal proceedings including suits before the Small Causes Court, applications before the competent authority under the Maharashtra Rent Control Act, writ petitions before the Bombay High Court, and an SLP before the Supreme Court.

## Facts

M/s. Seth Thakurdas Khinvraj Rathi (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against M/s. Cals Refineries Ltd. (Corporate Debtor) for an unpaid operational debt of Rs. 1,08,75,799/-. The debt arose from a Leave & Licence Agreement and a Licence and Hire Charges Agreement, both dated 10.03.2008, under which the Operational Creditor allowed the Corporate Debtor to use its premises in Mumbai. The agreements were terminated by the Operational Creditor, and an application was filed under Section 24 of the Maharashtra Rent Control Act seeking eviction and damages. The Corporate Debtor's Leave to Defend application was rejected, and directions were issued to hand over possession and pay arrears of compensation. The

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** The petition is maintainable if it adheres to the requirements of the Code and is

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**Reasoning:** The court found that the petition adhered to the requirements of the Code and was

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate the corporate

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

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## Parties

- **Judges:** Ina Mal…; SH. S.K MOH…
- **Appellants:** M/s. Seth…
- **Respondents:** M/s. Cals…

## Timeline

- **2008-03-10 — Leave & Licence…**: Leave & Licence Agreement and Licence and Hire Charges Agreement executed between the…
- **2008-01-01 — Suit Fil…**: Corporate Debtor filed a suit before the Small Causes Court, Mumbai, to restrain the…

## 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)

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