# In the matter of Mickey Mehta Health Beyond Fitness Private Limited

> NCLT judgment dated 2024-03-21. Citation: TCN-2024-NCLT-01993. Mukta Arts Limited, the Operational Creditor (OC), filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 21 Mar 2024
- **Citation:** TCN-2024-NCLT-01993
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mickey-mehta-health-beyond-fitness-private-limited-86ddfc65

## Summary

### Background

Mukta Arts Limited, the Operational Creditor (OC), filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Mickey Mehta's Health Beyond Fitness Private Limited, the Corporate Debtor (CD). The debt arises from a Leave and Licence Agreement between the OC and the CD for premises in a society. The OC claims that the CD defaulted on license fees and electricity charges. The CD raised objections, citing pre-existing disputes regarding the condition of the premises and deficient stamp duty on the agreement. The OC refuted these claims, asserting that the CD had admitted to the debt and continued to occupy the premises even after the license period expired.

## Facts

Mukta Arts Limited (Operational Creditor) and Mickey Mehta Health Beyond Fitness Private Limited (Corporate Debtor) entered into a Leave and License Agreement on 18.09.2011 for premises used by the CD for fitness programs. The agreement stipulated a monthly license fee, which increased over time. An addendum was executed on 03.12.2014, extending the agreement. The CD defaulted on license fees from April 2016 onwards. The OC issued letters in 2015 requesting payment and vacation of the premises. The CD made a partial payment for April 2016 but continued to default. The OC sent a demand notice on 12.11.2018, which the CD replied to, denying liability. The OC claimed Rs. 58,01,810/- was outstanding as of 05.04.2019, including principal, interest, and electricity charges.

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## Issues and analysis

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

**Ratio:** Section 9 of the IBC allows an operational creditor to initiate CIRP against a corporate

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**Reasoning:** The NCLT found that the application was complete and filed in the prescribed form. There

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

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**Application:** The NCLT determined that the application met the requirements of Section 9 and

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Mukta Arts…
- **Respondents:** Mickey Mehta…

## Timeline

- **2011-09-18 — Leave and License…**: Mukta Arts Limited (OC) and Mickey Mehta Health Beyond Fitness Private Limited (CD)…
- **2011-09-01 — Agreement Comm…**: The Leave and License Agreement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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