C.S Construction Co. Pvt. Ltd. Vs Chanakya Academy for Education and Training Pvt. Ltd. (NCLT Delhi)
The National Company Law Tribunal (NCLT), Delhi Bench, considered an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Operational Creditor seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for an alleged default of ₹1,41,64,007.88 as on 30.09.2024. The Corporate Debtor was operating coaching and training institutes, while the Operational Creditor was the owner of premises situated at Felicity Tower, Shankar Marg, Jaipur, Rajasthan. Between 2016 and 2019, the parties executed three registered lease deeds in respect of different portions of the premises. Under these lease deeds, the Corporate Debtor was required to pay monthly rent but allegedly defaulted in payment of rental dues, with the defaults continuing up to January 2021.
In early 2021, the Corporate Debtor sought termination of the lease agreements and introduced another entity, Sampoorn IAS Academy, as a prospective tenant. On 26.02.2021, the parties executed a Memorandum of Understanding (MoU) to settle rental arrears accumulated from February 2020 to February 2021. Under the MoU, the Operational Creditor agreed to accept ₹65,91,363 in full and final settlement of the actual outstanding rental dues of ₹1,01,03,318, subject to compliance with the payment terms. The MoU further provided that upon default, the Operational Creditor would be entitled to recover the full outstanding amount together with applicable interest from the Corporate Debtor and Sampoorn IAS Academy jointly and severally. The Corporate Debtor also issued post-dated cheques towards the settlement amount. According to the applicant, the Corporate Debtor paid only ₹18,50,000 in instalments, despite repeated reminders and a legal notice dated 05.02.2024. A demand notice under Section 8 of the IBC dated 22.10.2024 was thereafter served, but no response or payment was received.
