ORDER

Per: Prabhat Kumar, Member (Technical)

1. This is an application i.e. IA -1121/2023, filed by the Resolution Professional Ms. Vineeta Maheshwari in the matter of M/s Aaj Ka Anand Papers Limited, the Corporate Debtor, in C.P. (IB) 760/2021 under section 60(5) of the Insolvency and Bankruptcy Code, 2016 and Rule 11 of the National Company Law Tribunal Rules 2016 to seek directions to M/s Kwality Catering Services, the licensee of the premises owned by the Corporate Debtor, to pay outstanding rent of Rs. 38,19,200/- (Thirty Eight Lacs Nineteen Thousand and Two Hundred Only) and to vacate the licensed premises, in case such dues are not paid.

2. The Brief facts of the case are as under –

2.1.M/s Aaj Ka Anand Papers Limited is a company incorporated under the Companies Act, 1956 having its registered office at 365 Shivaji Nagar, Aaj Ka Anand Building, Pune, Maharashtra, India-411005 was admitted to CIRP process vide order dated 31.3.2022 passed by the Mumbai Bench of this Tribunal, and the applicant acted as Resolution Professional in the matter. Thereafter, the Corporate Debtor was ordered to be liquidated vide order dated 12.04.2023 and Mr. Jitender Jain, the Insolvency Professional was appointed as Liquidator to carry out the liquidation of the Corporate Debtor.

2.2.During CIRP process, the applicant came to know that the Corporate Debtor had entered into a Leave and License Agreement with M/s. Kwality Catering Services (“Licensee”) on 06/11/2020, registered before the Sub-Registrar of Haveli-III at Pune bearing registration no. 6717, to allow the licensee to use the Restaurant and Lodging premises, with built- up area admeasuring 688.49 sq. mtrs. together with exclusive right of user of the basement/ Lower Ground/ Upper Ground Parking and all the passages, open space in all that piece and parcel of land or ground admeasuring 521 sq. mtrs. bearing CTS No. 364+365/14 bearing plot no. 713+714/14 situated, lying and being at Bhamburda, Shivajinagar within the Registration Sub-District of Taluka Haveli, District Pune.

2.3.The said Leave and License Agreement was entered for a period of 5 (Five) years commencing from 01/03/2021 to 28/02/2026 and the Corporate Debtor didn’t have right to terminate the agreement before expiry of this period. However, the breach of any condition by either party to the contract, entails early termination by the licensor, subject to fulfilment of conditions contained in the agreement in this relation.

2.4. The License fees payable, by the Licensee to the Licensor, under the agreement is Rs. 2,75,000/- (Rupees Two Lakh Seventy-Five Thousand Only), plus GST as applicable thereon, per month for first 12 months i.e. 01/03/2021 to 28/02/2022 and thereafter 5% escalation after every 12 months from 01/03/2021 onwards. Further, clause 1.6 of the Agreement stipulates that the Licensee shall pay the License fees +GST regularly to the Licensor on or before 10th day of every subsequent/next month.

2.5.The Licensee paid interest free Security Deposit of Rs. 30,00,000/-, and the same was refundable at expiration of period of the agreement or upon handing over the possession of the licensed premises by the licensee under clause 1.7 of the Agreement.

2.6.Clause 21.1 of the agreement stipulates that “In the event of default in payment of the Licensee fees of any consecutive 3 months license fees, the Licensor shall give notice of such default by the Licensee and the Licensee must, within 7 days of the receipt of such notice, rectify such default failing which the Licensor shall be entitled to terminate this Leave and License upon a notice in writing of Seven Days”. The Applicant claims that, upon failure of the licensee to pay the outstanding license fees despite numerous notices & correspondences from the Applicant, the said leave & license agreement came to be terminated vide notice dated 27.01.2023, and the Licensee was asked to remove all belongings furniture, fixture, movable, articles/items and to handover and deliver