# In the matter of Suwarnsparsh Germs & Jewellers Ltd. I.A. NO. 1573 OF 2021 in C.P.-IB-1118-MB-2019

> NCLT judgment dated 2022-10-04. Citation: TCN-2022-NCLT-00845. The case involves an Interlocutory Application (I.A. No. 1573 of 2021) filed by Samith R. Arasa…

- **Court:** NCLT
- **Order date:** 4 Oct 2022
- **Citation:** TCN-2022-NCLT-00845
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suwarnsparsh-germs-jewellers-ltd-ia-no-1573-of-2021-in-cp-ib-1118-mb-2019-0ea0ce6a

## Summary

### Background

The case involves an Interlocutory Application (I.A. No. 1573 of 2021) filed by Samith R. Arasa against the Resolution Professional, Bijendra Kumar Agarwal, concerning Suvarnsparsh Gems and Jewellery (Corporate Debtor). The applicant sought directions for the liquidator to accept claims related to rent and compensation for damages arising from a Leave and License Agreement. The applicant and corporate debtor had a Leave and License Agreement dated 16.12.2015 for two shops, with a monthly rent of Rs. 75,000. The applicant claimed compensation of Rs. 25,000 per day for the period the corporate debtor allegedly remained in unlawful occupation after the agreement expired. The Resolution Professional admitted part of the claim, but the applicant sought acceptance of the

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## Facts

Samith R. Arasa (Applicant) and Suvarnsparsh Gems and Jewellery (Corporate Debtor) entered into a Leave and License Agreement on 16.12.2015 for two shops. The agreement was for a period of two years, commencing from 01.04.2015 to 04.04.2017, with a monthly rent of Rs. 75,000. Clause 17 of the agreement stipulated a compensation of Rs. 25,000 per day if the Corporate Debtor failed to vacate the premises after 04.04.2017. The Corporate Debtor vacated one shop (Shop No. 11A) before the expiry of the license period but continued to occupy Shop No. 11 until 05.11.2020, when it was vacated by the Resolution Professional (RP). The Company Petition was admitted on 22.10.2019, initiating CIRP against the Corporate Debtor. The Applicant filed a claim of Rs. 2,26,33,500 with the

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## Issues and analysis

### Issue 1: Whether the Petitioner is entitled to claim liquidated damages at the rate of Rs. 25,000/- per day …

**Ratio:** The NCLT, acting as a tribunal under the IBC, does not possess the jurisdiction or power

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**Reasoning:** The tribunal reasoned that the power to grant liquidated damages is typically exercised

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**Interpretation:** The interpretation is that claims for liquidated damages, which require a

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**Application:** The tribunal applied this principle to the applicant's claim for liquidated

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## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** Samith R.…
- **Respondents:** Suvarnsparsh Gems…; Bijendra Kumar…

## Timeline

- **2015-12-16 — Leave and License…**: Samith R. Arasa and Suvarnsparsh Gems and Jewellery entered into a Leave and License…
- **2015-04-01 — Agreement Comm…**: The Leave and License…

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