# In the matter of Airplaza Retail Holdings Private Limited

> NCLT judgment dated 2023-07-07. Citation: TCN-2023-NCLT-02616. Ajay Fashions Private Limited, the operational creditor, filed a petition under Section 9 of…

- **Court:** NCLT
- **Order date:** 7 Jul 2023
- **Citation:** TCN-2023-NCLT-02616
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/airplaza-retail-holdings-private-limited-750eb3e1

## Summary

### Background

Ajay Fashions Private Limited, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Airplaza Retail Holdings Private Limited, the corporate debtor, for unpaid lease rentals. The operational creditor claimed a default amount of Rs. 1,27,39,039.70/- based on invoices raised for the leased premises. The corporate debtor argued that there was a pre-existing dispute, the claim included liquidated damages which were not adjudicated, and the default fell within the period covered by Section 10A of the IBC, which prohibits initiation of CIRP for defaults occurring during the specified COVID-19 period.

## Facts

Ajay Fashions Private Limited (operational creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Airplaza Retail Holdings Private Limited (corporate debtor) for unpaid lease rentals. The lease agreement between the parties was dated 29.06.2006 and extended till 14.05.2021. The operational creditor claimed a default of Rs. 1,27,39,039.70/-. The corporate debtor argued that there was a pre-existing dispute, the claim included liquidated damages, and the default fell within the period covered by Section 10A of the IBC (COVID-19 period). The operational creditor sent reminders and a legal notice dated 29.04.2021. The corporate debtor proposed a settlement agreement in September 2021 but made no payments, except for a deposit of Rs.

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## Issues and analysis

### Issue 1: Whether the demand notice in Form 3 and Form 4 …

**Ratio:** A demand notice is considered duly served if it is delivered to the corporate debtor via

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**Reasoning:** The court noted that the demand notice was sent via registered post and the postal

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**Interpretation:** The legal principle is that proper service of a demand notice requires delivery

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**Application:** In this case, the demand notice was sent via registered post, and the corporate

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** Ajay Fashions…
- **Respondents:** Airplaza Retail…
- **Advocates:** Manish…; Divya S…; +1 more

## Timeline

- **2006-06-29 — Lease Agreeme…**: Lease Agreement between Ajay Fashions Private Limited and Airplaza Retail Holdings…
- **2008-02-01 — Incorporation of…**: Airplaza Retail Holdings…

## 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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