# In the matter of Panama Systems Private Limited C.P. (IB) 1237-MB-2019

> NCLT judgment dated 2019-07-10. Citation: TCN-2019-NCLT-02590. The case involves a Company Petition filed by Mrs. Lata Ajit Shah, the Petitioner, seeking to…

- **Court:** NCLT
- **Order date:** 10 Jul 2019
- **Citation:** TCN-2019-NCLT-02590
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/panama-systems-private-limited-cp-ib-1237-mb-2019-92dfbf24

## Summary

### Background

The case involves a Company Petition filed by Mrs. Lata Ajit Shah, the Petitioner, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Panama Systems Private Limited, the Corporate Debtor. The Petitioner alleges that the Corporate Debtor defaulted on a payment of Rs. 67,69,850/- inclusive of interest, stemming from a Leave and License Agreement. The Corporate Debtor was the lessee of the Petitioner's premises, with a monthly license fee of Rs. 4,50,000/-. The Corporate Debtor failed to pay the license fee from January 2018 to February 2019.

## Facts

Mrs. Lata Ajit Shah (Petitioner) filed a Company Petition against Panama Systems Private Limited (Corporate Debtor) under Section 9 of the IBC, alleging default in payment. The Petitioner and Corporate Debtor entered into a Leave and License Agreement dated 2017-02-16, where the Corporate Debtor was the lessee. The monthly license fee was Rs. 4,50,000, with a 5% annual increase. The Corporate Debtor failed to pay license fees from January 2018 to February 2019, totaling Rs. 67,69,850 (including interest). The Corporate Debtor issued two dishonored cheques for Rs. 30,00,000 and Rs. 25,89,000. The Petitioner issued a demand notice on 2019-02-21 for Rs. 62,85,600, which the Corporate Debtor did not reply to. The Corporate Debtor's representative accepted the liability and

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is in compliance with the provisions of …

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

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**Reasoning:** The Bench was satisfied that the petition filed by the Operational Creditor was in

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**Interpretation:** Section 9 provides the framework for operational creditors to initiate CIRP.

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**Application:** The court applied Section 9 to the facts, finding that the Petitioner had

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## Parties

- **Judges:** Bhaskara Pantula…; V. Nallasen…
- **Appellants:** Lata Ajit…
- **Respondents:** Panama Systems…

## Timeline

- **2017-02-16 — Leave and License…**: Petitioner and Corporate Debtor entered…
- **2018-01-01 — Default in…**: Corporate Debtor started…

## 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)

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