# In the matter of Umarai Worldwide Private Limited C.P. (IB) 552-MB-2019

> NCLT judgment dated 2019-12-20. Citation: TCN-2019-NCLT-00037. The National Agricultural Co-operative Marketing Federation of India Limited (Petitioner) filed…

- **Court:** NCLT
- **Order date:** 20 Dec 2019
- **Citation:** TCN-2019-NCLT-00037
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/umarai-worldwide-private-limited-cp-ib-552-mb-2019-a063e22d

## Summary

### Background

The National Agricultural Co-operative Marketing Federation of India Limited (Petitioner) filed a Company Petition seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Umarai Worldwide Private Limited (Corporate Debtor). The Petitioner alleges that the Corporate Debtor defaulted in making a payment of ₹2,14,14,560/-. The Petitioner is the owner of a cold storage known as NAFED Cold Storage situated at Vashi-Turbhe, Navi Mumbai. The Corporate Debtor was a successful bidder in a tender process conducted by the Petitioner for letting out the Cold Storage Facility on a leave and license basis for three years. A Leave & License Agreement dated 01.10.2015 was executed between the Petitioner and Corporate Debtor. The agreement stipulated a

…

## Facts

National Agricultural Co-operative Marketing Federation of India Limited (NAFED) owns a cold storage facility. Umarai Worldwide Private Limited (Corporate Debtor) won a tender to operate the facility under a Leave & License Agreement dated 2015-10-01. The agreement stipulated a monthly license fee of ₹9,31,000, increasing by 10% after one year, plus utility bill payments. The Corporate Debtor defaulted on payments from September 2017, accumulating a debt of ₹2,14,14,560. NAFED issued an eviction notice and a demand notice under Section 8 of the Insolvency & Bankruptcy Code (IBC). The Corporate Debtor denied the debt and requested renewal of the agreement. NAFED also initiated criminal proceedings due to dishonored cheques. The Corporate Debtor failed to appear

…

## Issues and analysis

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

**Ratio:** Section 8 and 9 of the Insolvency & Bankruptcy Code, 2016 outlines the procedure for

…

**Reasoning:** The Bench was satisfied that the application filed by the Operational Creditor met the

…

**Interpretation:** Section 8 and 9 of the IBC are interpreted to provide a mechanism for

…

**Application:** In this case, the application was deemed compliant because the Petitioner

…

## Parties

- **Judges:** SUCHITRA KANUPARTH…; V. Nallasen…; +1 more
- **Appellants:** National Agricultu…
- **Respondents:** Umarai Worldwide…
- **Advocates:** Nikeeta…; Anjali…

## Timeline

- **2015-10-01 — Leave & License…**: Leave & License Agreement executed between the Petitioner and Corporate Debtor for three…
- **2017-09-01 — 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)

---

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/umarai-worldwide-private-limited-cp-ib-552-mb-2019-a063e22d