# in the matter of Kerkar Fitness Pvt. Ltd. TCP No. 417-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-03-22. Citation: TCN-2018-NCLT-01657. The case involves a petition transferred from the Hon'ble High Court at Bombay Judicature.…

- **Court:** NCLT
- **Order date:** 22 Mar 2018
- **Citation:** TCN-2018-NCLT-01657
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kerkar-fitness-pvt-ltd-tcp-no-417-ibc-nclt-mb-mah-2017-ab6fca04

## Summary

### Background

The case involves a petition transferred from the Hon'ble High Court at Bombay Judicature. Initially, a petition was filed under Ordinary Original Civil Jurisdiction on October 28, 2016, before the High Court for winding up Kerkar Fitness Pvt. Ltd., invoking sections 433(e) and 434 of the Companies Act, 1956, due to a debt of ₹7,08,094 (principal) and ₹3,50,564 (interest). The petition was later transferred to the NCLT. The petitioner, Deepak Jain HUF, was the licensor of premises used by the corporate debtor, Kerkar Fitness Pvt. Ltd., under a Leave and Licence agreement dated November 11, 2011. The corporate debtor vacated the premises on January 2, 2014, without informing the petitioner and allegedly damaged the premises. The petitioner claimed unpaid license fees,

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## Facts

Deepak Jain HUF, the petitioner, entered into a Leave and Licence agreement dated 11.11.2011 with Kerkar Fitness Pvt. Ltd., the corporate debtor, allowing the latter to use premises Unit No. 30, 31, & 32 in Rajnigandha Shopping Centre, Gokuldham, Goregaon (E), Mumbai. The monthly compensation was ₹1,12,500 for the first 12 months, with a 7.5% escalation thereafter. The corporate debtor vacated the premises on 02.01.2014 without informing the petitioner and allegedly damaged the premises. The corporate debtor failed to clear outstanding amounts up to December 2013, issuing dishonored cheques. The petitioner claimed unpaid license fees, electricity charges, repair costs, and TDS amounts. The petitioner filed criminal complaints under Section 138 of the Negotiable

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## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the …

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

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**Reasoning:** The court considered the petitioner's evidence, including the Leave and Licence

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**Interpretation:** The court interpreted Section 9 to mean that if the operational creditor can

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**Application:** The court found that the petitioner had provided sufficient evidence to

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Deepak Jai…
- **Respondents:** Kerkar Fitness…
- **Advocates:** Kailash…; A.K. Sa…

## Timeline

- **2016-10-28 — Petition Filed in High…**: A petition was filed under Ordinary Original Civil Jurisdiction in the Bombay High Court…
- **2017-04-27 — Form No.5 Su…**: The Petitioner (Operational Creditor) submitted Form No.5 under Rule 6 therein under…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(11) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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