# In the matter of RAF Stationers Private Limited (IB)-77(ND)2019

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-02571. The case involves an application filed by M/s Knight Frank India Pvt. Ltd., the Operational…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-02571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/raf-stationers-private-limited-ib-77nd2019-baedb099

## Summary

### Background

The case involves an application filed by M/s Knight Frank India Pvt. Ltd., the Operational Creditor, under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against RAF Stationers Private Limited, the Corporate Debtor, for unpaid brokerage fees. The Operational Creditor claims that a service agreement was entered into with the Corporate Debtor on 08.05.2017, for providing services as a broker for leasing commercial property. Invoices were raised for the services, but payment was not made despite requests. A demand notice was sent on 21st November 2018, which was replied to by the Corporate Debtor on 04.12.2018, raising implausible grounds.

## Facts

M/s Knight Frank India Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against RAF Stationers Private Limited (Corporate Debtor). A service agreement dated 08.05.2017 was entered into between the parties, where the Operational Creditor was to act as a broker for leasing commercial property. The Operational Creditor raised invoices for the services provided, but the Corporate Debtor failed to make the payments. Despite requests, the amount remained unpaid, leading the Operational Creditor to send a demand notice on 21st November 2018, which the Corporate Debtor replied to on 04.12.2018. The Corporate Debtor disputed the validity of the service

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## Issues and analysis

### Issue 1: Whether the engagement agreement dated 8th May 2017 …

**Ratio:** An agreement is valid if there is consensus ad idem between the parties and the parties

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**Reasoning:** The NCLT found that the directors of the Corporate Debtor were aware of the terms of the

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**Interpretation:** The court interpreted the evidence to suggest that the Corporate Debtor was

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**Application:** The court applied the ratio to the facts and found that the Corporate Debtor's

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. VIRENDRA…
- **Appellants:** M/s. Knight Frank…
- **Respondents:** RAF Stationers…

## Timeline

- **2017-05-08 — Service Agr…**: Service agreement entered into between the…
- **2017-09-29 — Sub-Lease Ag…**: Sub-lease agreement entered into between…

## 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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