# In the matter of Frontier Lifeline Private Limited MA-1370-IB-2019 & MA-29-CHE-2021 in CP-698 (IB)-CB-2017

> NCLT judgment dated 2022-04-25. Citation: TCN-2022-NCLT-03080. The case involves a dispute over the termination of a license agreement between Frontier…

- **Court:** NCLT
- **Order date:** 25 Apr 2022
- **Citation:** TCN-2022-NCLT-03080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/frontier-lifeline-private-limited-ma-1370-ib-2019-ma-29-che-2021-in-cp-698-ib-cb-948eeaef

## Summary

### Background

The case involves a dispute over the termination of a license agreement between Frontier Lifeline Private Limited (Corporate Debtor) and St. Gregorios Medical Mission Hospital (SGMMH) regarding the operation of a cardiovascular center at SGMMH's premises. The Chairman of the Monitoring Committee of Frontier Lifeline, Mr. S. Rajagopal, filed an application (MA/29/CHE/2021) seeking to declare the termination notice issued by Dr. K.M. Cherian (representing SGMMH) as invalid and to compel SGMMH to comply with the renewal agreement. Dr. K.M. Cherian also filed an application (MA/779/CHE/2021) seeking modification of a status quo order related to the movable property of the Corporate Debtor and permission to remove medical equipment donated to him from SGMMH's premises. The

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## Facts

Frontier Lifeline Private Limited (Corporate Debtor) was admitted into CIRP on 02.08.2018. Mr. S. Rajagopal was appointed as the Chairman of the Monitoring Committee. The Corporate Debtor operated a cardiovascular center at St. Gregorios Medical Mission Hospital (SGMMH) in Parumala, Kerala, based on a license agreement. The initial license agreement was dated 14.02.2004, and it was renewed on 05.10.2018 for a further period of 3 years, expiring on 13.02.2022. Dr. K.M. Cherian, representing SGMMH, issued a termination notice on 12.12.2020, which was accepted by SGMMH on 16.01.2021. Mr. S. Rajagopal, as Chairman, sent an email to Dr. K.M. Cherian on 11.01.2021, requesting withdrawal of the termination notice. Dr. K.M. Cherian denied that the Parumala Centre belonged to

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## Issues and analysis

### Issue 1: Whether the termination notice dated 12.12.2020 issued by Dr. K.M. Cherian is valid, considering …

**Ratio:** The validity of a termination notice depends on the authority of the issuer and the terms

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**Reasoning:** The court considered arguments regarding Dr. K.M. Cherian's competence to act on behalf

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**Interpretation:** The interpretation hinges on whether Dr. K.M. Cherian had the legal authority

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**Application:** The court ultimately did not rule on the validity of the termination notice

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** S. RAJA…
- **Respondents:** Frontier Lifeline…; K.M. CH…

## Timeline

- **2004-02-14 — License Agreem…**: The initial license agreement between St. Gregorios Medical Mission Hospital and Frontier…
- **2018-08-02 — CIRP Init…**: Frontier Lifeline Private…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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