# In the matter of Divine Infracon Pvt. Ltd.  No. IB-209-ND-2017

> NCLT judgment dated 2017-09-28. Citation: TCN-2017-NCLT-00345. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 28 Sept 2017
- **Citation:** TCN-2017-NCLT-00345
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/divine-infracon-pvt-ltd-no-ib-209-nd-2017-af4874dd

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Mrs. Parmod Yadav and Mrs. Sneha Yadav (Operational Creditors/Applicants) against Divine Infracon Pvt. Ltd. (Corporate Debtor). The applicants, being mother and daughter, claim to be the owners of a service apartment leased to the corporate debtor. A lease agreement was entered into between the applicants (as lessors) and the corporate debtor (as lessee). The applicants claim that the corporate debtor defaulted on rental payments and issued a termination notice before the expiry of the lease period. The applicants filed a petition to initiate the Corporate Resolution Process (CIRP) against the corporate debtor.

## Facts

Mrs. Parmod Yadav and Mrs. Sneha Yadav, as operational creditors, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Divine Infracon Pvt. Ltd., the corporate debtor. The applicants are the owners of a service apartment located in Dwarka, New Delhi. A lease agreement was entered into between the applicants (as lessors) and the corporate debtor (as lessee) on 16.8.2014, effective retrospectively from 10.1.2012, with a duration of 15 years. The monthly rental was Rs.1,37,250/- plus service tax. The corporate debtor issued a termination notice on 4.4.2016, terminating the agreement before the expiry of the lease period. The applicants claimed that Rs.12,62,700/- was due as rentals and interest at the time of termination, along with a

…

## Issues and analysis

### Issue 1: Whether the lease agreement entered into for the lease of immovable property falls within the …

**Ratio:** The definition of 'operational debt' under Section 5(21) of the IBC, 2016, means a claim

…

**Reasoning:** The Tribunal reasoned that the lease of immovable property cannot be considered a supply

…

**Interpretation:** The interpretation of 'operational debt' under Section 5(21) of the IBC, 2016,

…

**Application:** In this case, the lease agreement for the service apartment does not constitute

…

## Parties

- **Judges:** R. VARADH…
- **Appellants:** Mrs Parmod…
- **Respondents:** Divine Infracon…

## Timeline

- **2012-01-10 — Effective Date…**: Lease was made effective retrospectively on and from 10.1.2012 correlating with certain…
- **2014-08-16 — Lease Agreeme…**: Lease agreement dated 16.8.2014 entered into between the parties which provided for the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

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/divine-infracon-pvt-ltd-no-ib-209-nd-2017-af4874dd