# In the matter of Degustibus Hospitality Pvt. Ltd. C.P. No.1284-MB-I&B-2020

> NCLT judgment dated 2021-09-27. Citation: TCN-2021-NCLT-00994. Hotel Horizon Private Limited filed a Company Petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 27 Sept 2021
- **Citation:** TCN-2021-NCLT-00994
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/degustibus-hospitality-pvt-ltd-cp-no1284-mb-ib-2020-197abcf4

## Summary

### Background

Hotel Horizon Private Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Degustibus Hospitality Private Limited, alleging default in payment of Rs. 1,31,52,877/-. The claim includes license fees, CAM charges, HVAC running costs, water charges, and interest on delayed payments, arising from a leave and license agreement where Hotel Horizon granted Degustibus Hospitality the right to operate a restaurant in their hotel. The agreement, dated December 28, 2017, stipulated fixed license fees or a revenue share, whichever was higher, along with CAM charges and utility payments. Hotel Horizon initiated CIRP against Degustibus Hospitality due to non-payment.

## Facts

Hotel Horizon Private Limited (Operational Creditor) and Degustibus Hospitality Private Limited (Corporate Debtor) entered into a leave and license agreement on December 28, 2017, for a period of 5 years, commencing from December 26, 2017, and ending on December 25, 2022. Under the agreement, Degustibus Hospitality was to operate a restaurant named 'Indigo Deli' in Hotel Horizon's premises. The agreement stipulated payment of license fees, CAM charges, and utility charges. Degustibus Hospitality defaulted on payments, leading to a total outstanding debt of Rs. 1,31,52,877/-, including license fees (Rs. 30,15,009/-), CAM charges (Rs. 15,47,069/-), HVAC running costs (Rs. 33,06,419/-), water charges (Rs. 2,90,360/-), and interest on delayed payments (Rs. 49,94,020/-).

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted in making payment of operational debt to the Operational …

**Ratio:** The ratio is that a 'debt' exists if there is a legally enforceable obligation to pay a

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**Reasoning:** The NCLT found that the Corporate Debtor failed to make payments as per the leave and

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**Interpretation:** The interpretation is that the existence of a legally enforceable agreement and

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**Application:** In this case, the leave and license agreement established the obligation for

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## Parties

- **Judges:** SUCHITRAKAN…; Chandra Bha…
- **Appellants:** Hotel Horizon…
- **Respondents:** Degustibus…; Degustibus…

## Timeline

- **2017-12-28 — Leave and License…**: Hotel Horizon Private Limited and Degustibus Hospitality Private Limited entered into a…
- **2017-12-26 — Agreement Comm…**: The leave and license…

## Legal provisions

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

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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/degustibus-hospitality-pvt-ltd-cp-no1284-mb-ib-2020-197abcf4