# In the matter of Govinda Industries Private Limited CP (IB) NO. 4035 OF 2019

> NCLT judgment dated 2021-04-30. Citation: TCN-2021-NCLT-02233. This case involves an application by operational creditors, Yogesh Ahuja & Anr., to initiate…

- **Court:** NCLT
- **Order date:** 30 Apr 2021
- **Citation:** TCN-2021-NCLT-02233
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/govinda-industries-private-limited-cp-ib-no-4035-of-2019-bb5607c5

## Summary

### Background

This case involves an application by operational creditors, Yogesh Ahuja & Anr., to initiate Corporate Insolvency Resolution Process (CIRP) against Govinda Industries Private Limited, the corporate debtor, due to default in payment of license fees. The operational creditors had leased office premises to the corporate debtor. Disputes arose regarding the payment of license fees, leading to the termination of the leave and license agreement. The operational creditors served a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016, which was not replied to by the corporate debtor. The corporate debtor argued that the rent/license fee is not a claim and thereby license fees is not an operational debt.

## Facts

Yogesh Ahuja & Anr. (operational creditors) filed a petition to initiate Corporate Insolvency Resolution Process (CIRP) against Govinda Industries Private Limited (corporate debtor) due to unpaid license fees. The operational creditors had leased office premises to the corporate debtor. The corporate debtor defaulted on license fee payments from February 2019 to September 2019, amounting to Rs. 10,40,000, and also owed Rs. 8,90,000 in liquidated damages as per the leave and license agreement dated 31.07.2018. The corporate debtor issued cheques in April 2019 to clear outstanding fees, but they were returned due to 'Funds Insufficient'. The operational creditors terminated the leave and license agreement on 19.06.2019. A demand notice was served on 15.10.2019 under

…

## Issues and analysis

### Issue 1: Whether the arrears of license fees constitute an 'operational debt' as defined under Section 5(21) …

**Ratio:** Section 5(21) of the Insolvency and Bankruptcy Code, 2016 defines 'operational debt' as a

…

**Reasoning:** The NCLT relied on the judgment of NCLAT in Anup Sushil Dubey vs National Agriculture

…

**Interpretation:** The interpretation of 'operational debt' under Section 5(21) includes any claim

…

**Application:** In this case, the operational creditors leased office premises to the corporate

…

## Parties

- **Judges:** H.V. Subb…; ShyamBabu…
- **Appellants:** Yogesh…
- **Respondents:** Govinda Industries…

## Timeline

- **2018-07-31 — Leave and Licence…**: Leave and Licence agreement was executed between the operational creditors and the…
- **2019-04-01 — Cheque Is…**: Corporate debtor issued several cheques…

## 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)

---

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/govinda-industries-private-limited-cp-ib-no-4035-of-2019-bb5607c5