Tribunals and CommissionsFull Bench(2024) 01 NCLAT CK 3483

Jitender Kumar Jain vs Kwality Catering Services & Ors.

National Company Law Appellate Tribunal, New Delhi · Decided on 8 January 2024

HON’BLE JUDGES
Ashok Bhushan, Chairperson · Barun Mitra, Member (Technical) · Arun Baroka, Member (Technical)
CASE NUMBER
Company Appeal (AT) (Insolvency) No.1116 of 2023

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Judgment

10 paragraphs · 449 words

O R D E R

08.01.2024: Heard Mr. Krishnan Venugopal, learned senior counsel for the Appellant and learned counsel appearing for the Respondent. This Appeal has been filed against order dated 18.07.2023 passed by the Adjudicating Authority (National Company Law Tribunal) Mumbai Bench-IV in I.A. No. 1121/2023 in CP (IB) No. 760/MB-IV/2021. I.A. was filed by the Resolution Professional seeking a direction to the Respondent licensee of the premises to pay outstanding rent of Rs.38,19,200/-. The Adjudicating Authority on the said application has passed the order directing the Respondent to pay outstanding rent as payable upto said date. In Para 7 of the order the Adjudicating Authority, however, directed that Applicant - Corporate Debtor issue a notice to the Respondents, specifically intimating the Respondent the consequence of non-payment of outstanding dues, as are due and payable upto the date of order, within seven days. Aggrieved by the said direction, this Appeal has been filed by the Liquidator.

2.

This Tribunal on 25.08.2023 passed following order:

“O R D E R

25.08.2023: Learned Sr. Counsel for the Appellant submits that the Adjudicating Authority by Order dated 18th July, 2023 directed the Appellant to give seven days further notice and on failure, the Applicant Corporate Debtor shall be at liberty to exercise its right to terminate the said agreement. It is submitted that default having already been committed, right has also accrued to issue termination of the Leave and Licence Agreement.

2.

Submission needs scrutiny. Issue notice to the Respondents through Speed Post as well as Email. Requisites along with process fee, if not filed, be filed within two days.

3.

It shall be open for the Appellant to issue termination notice as per Clause 21 of the Leave and Licence Agreement.

4.

Reply-Affidavits may be filed within two weeks. Rejoinder may be filed within two weeks, thereafter. List this Appeal on 25th September, 2023.”

3.

Learned counsel for the Appellant submits that after filing of the appeal the Respondent No.1 has already vacated the premises under the orders passed by Bombay High Court on 08.09.2023. Learned counsel for the Respondent also does not dispute that premises has now been vacated by the Respondent.

4.

The Adjudicating Authority has already directed for payment of the rent which was outstanding upto that date, which order has not been challenged by the Respondent. The Respondent is under obligation to pay rent as per the order impugned. We are of the view that nothing survives in the appeal to be considered and decided. It is submitted by the Respondent that Arbitration Proceedings are going on. It is open for the parties to take such proceedings as available in law. Appeal is disposed of accordingly.