# In the matter of Innovative Aviation Private Limited IB-2183-(ND)-2019

> NCLT judgment dated 2023-05-17. Citation: TCN-2023-NCLT-03293. The application was filed by SKB Infracon Private Limited, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 17 May 2023
- **Citation:** TCN-2023-NCLT-03293
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/innovative-aviation-private-limited-ib-2183-nd-2019-5c7518fd

## Summary

### Background

The application was filed by SKB Infracon Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Innovative Aviation Private Limited, the Corporate Debtor, for an alleged default of Rs. 3,81,53,613/-. The dispute arose from a lease agreement where the Corporate Debtor leased aircraft from the Operational Creditor. The Operational Creditor claimed that the Corporate Debtor defaulted on lease payments. The Corporate Debtor disputed the claim, asserting that the agreements were not executed, the lease rental rate was not agreed upon, and the amounts claimed were time-barred.

## Facts

In 2014, Innovative Aviation Private Limited (Corporate Debtor) approached SKB Infracon Private Limited (Operational Creditor) for leasing aircraft. A Memorandum of Understanding cum Lease Agreement was entered on 2014-11-11 for a two-year period from 2014-11-15 to 2016-11-14. The Corporate Debtor provided an interest-free security deposit of Rs. 21,00,000/-. The Corporate Debtor was to pay Rs. 5,00,000/- per month from November 2014 to 2015-11-14, and Rs. 12,00,000/- per month from 2015-11-15 to 2016-11-14. The Operational Creditor received only Rs. 49,76,640/- and no Service Tax for Rs. 7,58,000/- was paid, leaving Rs. 17,81,360/- due. The Corporate Debtor was to pay an annual rent of Rs. 1,44,00,000/- excluding GST & TDS from 2015-11-15 to 2016-11-14, calculated

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the IBC, 2016 can be admitted when there are …

**Ratio:** An application under Section 9 of the IBC, 2016 cannot be admitted if there are disputes

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**Reasoning:** The court reasoned that the existence of a pre-existing dispute negates the basis for

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**Interpretation:** The interpretation of Sections 8 and 9 of the IBC, as clarified by the Supreme

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**Application:** In this case, the court found that the email dated 2017-09-06, wherein the

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** M/s. SKB Infracon…
- **Respondents:** M/s. Innovative…

## Timeline

- **2014-11-11 — Lease Agr…**: Memorandum of Understanding cum Lease Agreement entered between SKB Infracon Private…
- **2014-11-15 — Lease Perio…**: Lease agreement commenced…

## 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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