# In the matter of Mack Star Marketing Private Limited CP (IB) No. 3446 of 2018

> NCLT judgment dated 2021-09-08. Citation: TCN-2021-NCLT-01154. The case involves an application by M/s TNS India Private Limited (Operational Creditor) to…

- **Court:** NCLT
- **Order date:** 8 Sept 2021
- **Citation:** TCN-2021-NCLT-01154
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mack-star-marketing-private-limited-cp-ib-no-3446-of-2018-0426da20

## Summary

### Background

The case involves an application by M/s TNS India Private Limited (Operational Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against Mack Star Marketing Private Limited (Corporate Debtor) for defaulting on a payment of Rs. 73,41,042/-. The Operational Creditor claims this amount is due under invoices raised upon the Corporate Debtor. The Corporate Debtor argues that the security deposit under a leave and license agreement does not qualify as an 'Operational Debt' and that an arbitration clause exists in the agreement.

## Facts

M/s TNS India Private Limited (Operational Creditor) filed a company petition against Mack Star Marketing Private Limited (Corporate Debtor) seeking to initiate CIRP for a default of Rs. 73,41,042/-. The Corporate Debtor owns premises at Kaledonia, Sahar Road, Andheri (East), Mumbai. A leave and license agreement was executed between the parties on 13.01.2011 for a period from 07.01.2011 to 06.01.2016. The Operational Creditor also paid a refundable interest-free security deposit of Rs. 1,27,68,042/- to the Corporate Debtor. The Corporate Debtor was liable to refund the security deposit upon the expiration of the license term. Although the license term expired on 06.01.2016, the Operational Creditor continued to occupy the premises. The Corporate Debtor transferred the

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## Issues and analysis

### Issue 1: Whether the petitioner qualifies …

**Ratio:** An operational creditor is defined as a person to whom an operational debt is owed and

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**Reasoning:** The court reasoned that the 'Operational Creditor' is a Licensee who has not supplied any

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**Interpretation:** The definition of 'Operational Creditor' requires the existence of an

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**Application:** Since the petitioner is a licensee and the debt arises from a security deposit,

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** M/s TNS India…
- **Respondents:** MACK STAR…
- **Advocates:** Anand Ba…; Shiv…

## Timeline

- **2011-01-13 — Leave and License…**: Leave and license agreement executed between M/s TNS India Private Limited and Mack Star…
- **2011-01-07 — Agreement Sta…**: Leave and license agreement started between M/s TNS India Private Limited and Mack Star…

## 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)

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