# In the matter of Fast Trax Food Private Limited Company Petition No. 1563 (ND(-2019

> NCLT judgment dated 2020-03-19. Citation: TCN-2020-NCLT-01443. Parsvnath Developers Limited, claiming to be an operational creditor, filed an application…

- **Court:** NCLT
- **Order date:** 19 Mar 2020
- **Citation:** TCN-2020-NCLT-01443
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fast-trax-food-private-limited-company-petition-no-1563-nd-2019-99d800a8

## Summary

### Background

Parsvnath Developers Limited, claiming to be an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against Fast Track Food Private Limited, the corporate debtor. The application was based on unpaid operational debt arising from a Sub-License Agreement executed on 10.08.2009, where Fast Track Food Private Limited was liable to pay service tax and other charges in addition to the Sub-License Fees. Despite discussions and settlement agreements, the corporate debtor failed to make timely payments, leading to dishonored cheques and a subsequent demand notice issued by the operational creditor on 20.03.2019.

## Facts

Parsvnath Developers Limited (Operational Creditor) and Fast Track Food Private Limited (Corporate Debtor) entered into a Sub-License Agreement on 10.08.2009. Under the agreement, the Corporate Debtor was obligated to pay service tax and other charges in addition to the Sub-License Fees for Unit/Hall No. 15 and Sub-way Shop No. 2 & 3 at Parsvnath Mall, Kashmere Gate, Delhi. The Corporate Debtor failed to make timely payments, leading the Operational Creditor to issue a Legal Notice on 29.03.2017. Subsequently, a Memorandum of Understanding cum settlement Agreement was dated 14.12.2017, where the Corporate Debtor agreed to pay Rs. 16,20,145/- and provide TDS Certificates for the financial years 2013-14 and 2014-15. The Corporate Debtor issued four post-dated

…

## Issues and analysis

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

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

…

**Reasoning:** The court observed that the application under Section 9 was filed in the requisite

…

**Interpretation:** Section 9 provides a mechanism for operational creditors to recover their dues

…

**Application:** In this case, the Operational Creditor, Parsvnath Developers Limited, filed a

…

## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** Parsvnath…
- **Respondents:** Fast Track Food…
- **Advocates:** Arpit Dw…; Aayushi…

## Timeline

- **2009-08-10 — Sub-License A…**: Sub-License Agreement executed between Parsvnath Developers Limited and Fast Track Food…
- **2017-03-29 — Legal No…**: Parsvnath Developers Limited issued a Legal Notice to Fast Track Food Private Limited for…

## 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)

---

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/fast-trax-food-private-limited-company-petition-no-1563-nd-2019-99d800a8