# In the matter of Aspire Fitness Private Limited

> NCLT judgment dated 2023-11-23. Citation: TCN-2023-NCLT-00591. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 23 Nov 2023
- **Citation:** TCN-2023-NCLT-00591
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aspire-fitness-private-limited-0d82cf89

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Mr. Amit N. Gandhi and Mr. Navnitlal U. Gandhi, the Operational Creditors (OCs), against Aspire Fitness Private Limited, the Corporate Debtor (CD), for initiating Corporate Insolvency Resolution Process (CIRP). The OCs and CD had a Leave and License Agreement, where the CD was obligated to pay a license fee, electricity, and water bills. The OCs claimed default by the CD on these payments. The CD was set ex-parte, and the OCs were directed to issue notice to the CD. The OCs claimed that the CD issued a letter seeking rent reduction due to the COVID-19 pandemic. The OCs terminated the agreement due to non-payment and issued a demand notice under Section 8 of the

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## Facts

Mr. Amit N. Gandhi and Mr. Navnitlal U. Gandhi (OCs) jointly filed an application under Section 9 of the IBC against Aspire Fitness Private Limited (CD). The OCs and CD entered into a Leave and License Agreement on 28.01.2018 for 4 terms of 12 months, where the CD was to establish a health club and gym. The CD was obligated to pay a license fee, electricity, and water bills. The OCs claimed that the CD defaulted on payments, with a total amount of Rs. 1,34,97,857.84 outstanding. The CD issued a letter seeking rent reduction due to the COVID-19 pandemic from 01.11.2020 to 31.12.2021. The OCs terminated the agreement on 25.03.2021 and issued a demand notice under Section 8 of the IBC on 19.10.2021. The CD was set ex-parte on 23.03.2023. The OCs' banker, ICICI Bank, had

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## Issues and analysis

### Issue 1: Whether an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 can be filed …

**Ratio:** Section 5(20) of the IBC defines 'operational creditor' as 'a person to whom an

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**Reasoning:** The court reasoned that the legislative intention, based on the definitions in the IBC,

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**Interpretation:** The interpretation of Section 9 of the IBC is that it requires an application

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**Application:** In this case, the application was filed jointly by Mr. Amit Gandhi and Mr.

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## Parties

- **Judges:** K. R. SAJI…; Madhu S…
- **Appellants:** AMIT N. G…
- **Respondents:** ASPIRE FITNESS…

## Timeline

- **2018-01-28 — Leave and License…**: OCs entered into a Leave and License…
- **2020-11-01 — CD Seeks Rent…**: CD issued a letter seeking rent reduction due to the COVID-19 pandemic, effective from…

## 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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