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2025 Supreme(Online)(NCLT) 5178
NATIONAL COMPANY LAW TRIBUNAL
Prabhat Kumar, Hon’ble Member (Technical), Sushil Mahadeorao Kochey, Hon’ble Member (Judicial)
Jitendra Kumar Jain – Appellant
Versus
M/s SNVP Enterprises – Respondent
C.P.(IB) NO. 760/IBC/(MB) OF 2021
For the Applicant: Adv. Rahul Dev, Adv. Arjun Amin, Adv. M.S. Avina Karnad
For Respondent No.9: Adv. Rishabh Chandra
For Respondent No.10 & 11: Adv. Prachi Wazalwar a/w Adv.Shawn Fernandes
For Respondent No.12 to 14: Adv. Mayank Bagla a/w Adv. Siddhi Bhutada
Insolvency proceedings can compel licensees to vacate premises if prior agreements have expired, and they remain liable for unpaid fees contrary to the insolvency regulations.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 60(5) - Liquidator's Application against licensees for possession of corporate debtor's premises - The leave and license agreement had expired, with no renewal indicated - Respondents liable for unpaid fees up to the termination date and ordered to vacate premises - The Liquidator authorized to take possession. (Paras 21-34)
(B) Applicability of SARFAESI Act - The tenant's agreement executed after security was established under SARFAESI Act is invalid - Implied prohibition on the transfer of licensed premises. (Paras 25)
Facts of the case:
The Liquidator is seeking to repossess the premises from various licensees including Respondent No. 2, whose agreement expired in November 2021, after the corporate debtor entered insolvency. Respondent No. 1 entered agreements without valid licenses.
Findings of Court:
Respondents to pay fees due as per agreements and vacate premises within 30 days.
Issues: Regarding validity of license agreements, obligations of licensees post-expiration, and applicability of insolvency legislation.
Ratio Decidendi: License agreements expired by efflux of time; provisions of IBC and SARFAESI Act govern possession and responsibilities of debtors and licensees.
Result: Ordered Respondents to pay dues and vacate premises.
| Table of Content |
|---|
| 1. application for possession by liquidator set in motion. (Para 1 , 2 , 3) |
| 2. involvement of licensees post-cirp and their obligations. (Para 4 , 5 , 9) |
| 3. determination of validity and implication of expired license agreements. (Para 21 , 22 , 31) |
| 4. order for possession and payment directed to respondents. (Para 33) |
ORDER
1. This Application IA 2940/2023 was filed on 08th July, 2023 by Jitendra Kumar Jain (“Applicant”), one of Liquidator of Aaj Ka Anand Papers Limited (CIN – U22110MH1993PLC034813) (“Corporate Debtor/AKAPL”), under Section 60 (5) of The Insolvency and Bankruptcy Code, 2016 ("Code") against Respondent Nos. 1 to 14 for their illegal acts, the Applicant has sought following reliefs:
(A) AD-INTERIM RELIEF
i. To direct Respondent Nos. 1 to 14 to allow the valuers appointed by the Liquidator to inspect the Second Floor Premises for the purpose of valuation under the IBC.;
ii. To direct the jurisdictional police authorities to initiate criminal proceedings against Respondent Nos. 1 to 14 and other concerned persons under the Indian Penal Code, 1860 for their illegal acts by registering FIR (first information report) in this matter as per section 154 of the Criminal Procedure Code, 1973 .
iii. To direct Respondent Nos. 1 to 14 to immediately stop, jointly as well as severally, the running of ’Lakme Academy’ from Second Floor Premises of the Corporate Debtor.
(B) FINAL RELIEF iv. To admit and allow the present Application.
v. To direct Respondent Nos. 1 to 14 to immediately, jointly as well as severally, handover the possession of Second Floor Premises to the Liquidator so that the Liquidator can perform his duties u/s 35 and others provisions of the IBC.
vi. To direct the Superintendent of Police, Pune to provide police assistance to the Applicant / Liquidator to take possession of Second Floor Premises of the Corporate Debtor to the Liquidator from Respondent Nos. 1 to 14.
vii. To direct Respondent Nos. 1 to 14 to pay, severally as well as jointly, an amount of INR 48,85,200 (Indian Rupees Forty-Eight Lakhs Eighty-Five Thousand and Two Hundred only) to the Corporate Debtor for the period of 01 May 2020 to 30 June 2023 along with interest thereon @ 18% per annum from their due date till actual date of payment thereof.
viii. To direct Respondent Nos. 1 to 14 to pay, severally as well as jointly, an amount of INR 1,22,130 (Indian Rupees One Lakh Twenty-Two Thousand One Hundred and Thirty only) per month to the Corporate Debtor along with interest @ 18% per annum from their due date to actual date of payment thereof for the period starting from 01 July 2023 to the date of handing over of the possession of Second Floor Premises of the Corporate Debtor to the Applicant.
ix. To direct the Insolvency & Bankruptcy Board of India / Ministry of Corporate Affairs to initiate the appropriate proceeding against Respondent Nos. 1 to 14 for violating the provisions of the IBC as mentioned in para 3.18 hereinabove.
x. To award the cost of these proceedings to the Corporate Debtor.
xi. To pass such other orders/directions as deemed fit and necessary by this Hon’ble Tribunal in the interest of justice and equity.
Facts of the Case
2. Respondent No. 2 entered into a leave and license agreement dated 17th November, 2016 (“Agreement") with Aaj Ka Anand Papers Limited ("Corporate Debtor / AKAPL") with respect to premises on second floor of Aaj Ka Anand building and said Agreement was valid up to 30th November 2021.
3. Respondent No. 1 is licensee of the Premises and Respondent no. 3 to 7 are its partners. Respondent No. 2 is erstwhile licensee, whose license expired on 30th November, 2021. Respondent No. 8 Hindustan Lever Limited is owner of “Lakme” trademark and Respondent No. 9 Lakme Lever Private Limited, subsidiary of Respondent No. 8 is licensee of said Trademark. Respondent No. 11 is licensee of Trademark “Lakme Academy and subsidiary of Respondent No. 10, Aptech Limited. ”Respondent Nos. 12 to 14 were appointed as the executive dire
