# In the matter of Lavasa Hotel Limited C.P. No. 3953-IBC-MB-2019

> NCLT judgment dated 2022-09-06. Citation: TCN-2022-NCLT-01160. Fortune Park Hotels Ltd filed a Company Petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 6 Sept 2022
- **Citation:** TCN-2022-NCLT-01160
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lavasa-hotel-limited-cp-no-3953-ibc-mb-2019-e8b3599d

## Summary

### Background

Fortune Park Hotels Ltd filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Lavasa Hotels Limited for an operational debt of Rs. 2,13,13,394.66. Lavasa Hotels Limited is a wholly-owned subsidiary of Lavasa Corporation Limited (LCL). LCL was undergoing CIRP. Fortune Park Hotels Limited provided Technical Audit, Pre-opening, Operating and Marketing Services to Lavasa Hotels Limited. Lavasa Hotels Limited failed to pay the outstanding amount despite repeated requests and a demand notice.

## Facts

Fortune Park Hotels Ltd (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Lavasa Hotels Limited (Corporate Debtor) due to an outstanding operational debt of Rs. 2,13,13,394.66. Fortune Park Hotels provided Technical Audit, Pre-opening, Operating and Marketing Services to Lavasa Hotels. Lavasa Hotels is a wholly-owned subsidiary of Lavasa Corporation Limited (LCL). LCL was already undergoing CIRP. A management agreement existed between LHL and LCL for the hotel's management. Lavasa Hotels failed to pay the outstanding amount despite repeated requests and a demand notice dated 29.08.2019. Lavasa Hotels did not file any reply disputing the debt and default. A representative of Lavasa Hotels

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## Issues and analysis

### Issue 1: Whether the application filed by Fortune Park Hotels Ltd under Section 9 of the Insolvency and …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The applicant, Fortune Park Hotels Ltd, is an operational creditor. The application is

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**Interpretation:** Section 9 provides the mechanism for operational creditors to recover their

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**Application:** The application is maintainable as Fortune Park Hotels is an operational

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## Parties

- **Judges:** H.V. Subb…; SMT ANURADHA…
- **Appellants:** Fortune Park…
- **Respondents:** Lavasa Hotels…; Lavasa Hote…

## Timeline

- **2005-09-05 — Agreemen…**: LCL entered into a Technical Audit, Pre-Opening, Operating and Marketing Services…
- **2007-09-01 — Incorpor…**: Lavasa Hotels Ltd. was incorporated as…

## 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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