# In the matter of CLAPS Wikids Education Private Limited CP (IB) No. 409-7-HDB-2018

> NCLT judgment dated 2018-12-03. Citation: TCN-2018-NCLT-00231. The case involves a petition filed by Cyberabad Hitech Integrated Township Development…

- **Court:** NCLT
- **Order date:** 3 Dec 2018
- **Citation:** TCN-2018-NCLT-00231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/claps-wikids-education-private-limited-cp-ib-no-409-7-hdb-2018-edd09df7

## Summary

### Background

The case involves a petition filed by Cyberabad Hitech Integrated Township Development Corporation Private Limited (CHIDCO), the Financial Creditor, against CLAPS Wikids Education Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor claims that the Corporate Debtor defaulted on a total amount of Rs. 5,68,821, comprising principal and interest, related to a lease agreement for premises used for a play school. The petition seeks initiation of the Corporate Insolvency Resolution Process (CIRP), a moratorium, and appointment of an Interim Resolution Professional (IRP).

## Facts

Cyberabad Hitech Integrated Township Development Corporation Private Limited (CHIDCO) leased premises to CLAPS Wikids Education Private Limited for running a play school, as per a lease deed dated 2014-04-12. The monthly rent was initially Rs. 14,880, with a 5% annual increase. A security deposit of Rs. 75,000 was also required. The Corporate Debtor defaulted on rent and electrical charges from April 2014 to September 2015. From 2015-10-14 to 2016-12-17, the Corporate Debtor paid Rs. 5,15,000 out of the total due of Rs. 9,42,415. The Corporate Debtor was notified as a defaulter for payments from October 2016 to July 2018. The total outstanding amount, including rent, electrical charges, and interest, was Rs. 5,68,821. A legal notice was issued on 2017-10-26, demanding

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default in payment of lease amount/rent to the Financial …

**Ratio:** A default occurs when a debtor fails to pay a debt when it has become due and payable.

…

**Reasoning:** The court relied on the lease deed, legal notices, ledger accounts, and correspondence to

…

**Interpretation:** The interpretation of 'default' in the context of the IBC encompasses any

…

**Application:** The court applied the ratio to the facts by examining the lease agreement and

…

## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Appellants:** Cyberabad Hi-tech…
- **Respondents:** Claps Wikikids…

## Timeline

- **2014-04-12 — Lease Deed Ex…**: Lease deed executed between Cyberabad Hitech Integrated Township Development Corporation…
- **2015-07-21 — Cheque Issue and…**: Corporate Debtor issued a cheque for Rs. 75,000, which was dishonored due to 'payment…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

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/nclt-chandigarh/claps-wikids-education-private-limited-cp-ib-no-409-7-hdb-2018-edd09df7