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

> NCLT judgment dated 2023-05-17. Citation: TCN-2023-NCLT-03305. The application was filed by SKB Infracon Private Limited, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 17 May 2023
- **Citation:** TCN-2023-NCLT-03305
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/innovative-aviation-private-limited-ib-2183-nd-2019-71038151

## 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 non-payment of lease amounts and other defaults. The Corporate Debtor disputed the claim, asserting that the amounts claimed were disputed, agreements were not executed, and rates were not agreed upon.

## 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 executed on 2014-11-11 for a two-year period from 2014-11-15 to 2016-11-14. The Corporate Debtor provided a 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 Rs. 49,76,640/- but no service tax for Rs. 7,58,000/- was paid. An amount of Rs. 17,81,360/- was 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. The Operational

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the Insolvency and …

**Ratio:** An Operational Creditor can only trigger the CIRP process when there is an undisputed

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**Reasoning:** The court relied on the Supreme Court's judgment in "Mobilox Innovations Pvt. Ltd.

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**Interpretation:** The existence of a dispute prior to the issuance of a demand notice under

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**Application:** In this case, the court found that there was a pre-existing dispute between the

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## Parties

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

## Timeline

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

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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