# In the matter of International Recreation and Amusement Ltd. IA No. 662-2021 in Company Petition No. (IB)-297(ND)-2018

> NCLT judgment dated 2021-02-15. Citation: TCN-2021-NCLT-03044. Smash Entertainment Private Limited, as a licensee of the corporate debtor International…

- **Court:** NCLT
- **Order date:** 15 Feb 2021
- **Citation:** TCN-2021-NCLT-03044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/international-recreation-and-amusement-ltd-ia-no-662-2021-in-company-petition-no-fc5564e0

## Summary

### Background

Smash Entertainment Private Limited, as a licensee of the corporate debtor International Recreation and Amusement Ltd., filed an application (IA-662/2021) seeking directions against Dakshin Haryana Bijli Vitran Nigam (DHBVN) to resume electricity connection to the premises at Appu Ghar, Sector-29, Gurgaon. The applicant claimed the electricity was disconnected in March 2020 and sought a separate meter for their operations. The applicant argued that under Section 14(2) of the Insolvency & Bankruptcy Code (IBC), the supply of essential goods and services to the corporate debtor should not be terminated during the moratorium period.

## Facts

Smash Entertainment Private Limited is a licensee operating gaming and sports entertainment under the name Oyster Beach Water Park at Sector-29, Gurgaon. They entered into a license agreement with the corporate debtor, International Recreation and Amusement Ltd., on 21.06.2016. Smash Entertainment filed an application (IA-662/2021) seeking the restoration of electricity connection to their premises, claiming it was disconnected by Dakshin Haryana Bijli Vitran Nigam (DHBVN) in March 2020. They argued that as per Section 14(2) of the IBC, essential services to the corporate debtor should not be terminated during the moratorium period. The electricity bill issued on 08.01.2021 showed electricity consumption after March 2020, contradicting the applicant's claim. The bill

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## Issues and analysis

### Issue 1: Whether the application filed by the licensee, Smash Entertainment Private Limited, is maintainable …

**Ratio:** The licensee does not have the locus standi to file the application under the IBC. Only

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**Reasoning:** The NCLT reasoned that the applicant, being a licensee and not the corporate debtor, had

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**Interpretation:** Section 14 of the IBC provides for a moratorium period during which certain

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**Application:** The applicant, Smash Entertainment, was not the corporate debtor. Therefore, it

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## Parties

- **Judges:** SH. B.S.V.…; Sh. Hemant Kumar…
- **Appellants:** Smash Entertainmen…
- **Respondents:** International…; Pramod Kuma…

## Timeline

- **2016-06-21 — License Agr…**: Smash Entertainment Private Limited entered into a license agreement with International…
- **2020-03-01 — Alleged Disco…**: Smash Entertainment claimed that Dakshin Haryana Bijli Vitran Nigam (DHBVN) disconnected…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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