# In the matter of I Think Fitness Pvt. Ltd.

> NCLT judgment dated 2023-11-06. Citation: TCN-2023-NCLT-00851. Hotel Horizon Pvt. Ltd. filed a Company Petition on 2020-05-15 seeking to initiate Corporate…

- **Court:** NCLT
- **Order date:** 6 Nov 2023
- **Citation:** TCN-2023-NCLT-00851
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/i-think-fitness-pvt-ltd-f05ca24a

## Summary

### Background

Hotel Horizon Pvt. Ltd. filed a Company Petition on 2020-05-15 seeking to initiate Corporate Insolvency Resolution Process (CIRP) against I Think Fitness Pvt. Ltd. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016, for an operational debt of Rs. 2,28,04,550/-, which included license fees, CAM charges, HVAC running costs, water charges, and interest on delayed payments. The Corporate Debtor disputed the total outstanding amount and claimed a pre-existing dispute.

## Facts

Hotel Horizon Pvt. Ltd. (Operational Creditor) and I Think Fitness Pvt. Ltd. (Corporate Debtor) entered into a leave and license agreement on 2017-12-19 for a property used by the Corporate Debtor for gymnasium services. The Operational Creditor claimed an operational debt of Rs. 2,28,04,550/- against the Corporate Debtor, comprising license fees, CAM charges, HVAC running costs, water charges, and interest on delayed payments. The Operational Creditor issued invoices between 2018 and 2019. The Corporate Debtor failed to make payments. The Operational Creditor issued a demand notice on 2019-12-21. The Corporate Debtor denied the debt, citing operational losses due to unavailability of electricity, waterlogging, and incomplete construction. The Corporate Debtor also

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## Issues and analysis

### Issue 1: Whether a pre-existing dispute exists between the Operational Creditor and the Corporate Debtor, …

**Ratio:** The existence of a pre-existing dispute, even if it is not fully adjudicated, can be a

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**Reasoning:** The court found that the Corporate Debtor had presented sufficient documentary evidence,

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**Interpretation:** The legal issue revolves around the interpretation of 'pre-existing dispute'

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**Application:** In this case, the Corporate Debtor presented a police complaint dated

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Hotel Horizon…
- **Respondents:** I Think Fitness…

## Timeline

- **2017-12-19 — Leave and License…**: Operational Creditor and Corporate Debtor…
- **2018-01-01 — Agreement Comm…**: Leave and license agreement…

## 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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