Hannu Steels Private Limited Vs Rathi Powertech Global Private Limited (NCLAT Delhi)
Summary: The National Company Law Appellate Tribunal, Principal Bench, New Delhi, allowed the appeal filed by Hannu Steels Private Limited against the order dated 08.12.2025 passed by the National Company Law Tribunal, New Delhi Bench-IV, in CP (IB) No. 567/ND/2025. The NCLT had closed the Appellant’s right to file reply in proceedings initiated under Section 9 of the Insolvency and Bankruptcy Code, 2016.
The dispute arose from a License User Agreement dated 01.03.2022 between Hannu Steels Private Limited and Rathi Powertech Global Private Limited. Rathi Powertech, owner of the “POWERTECH” trademark for manufacture and marketing of TMT Bars, had granted Hannu Steels a licence to use the trademark against a monthly licence fee of Rs.23,00,000/- plus applicable GST. The agreement was subsequently extended by an Addendum dated 28.02.2023 until 28.02.2025, with the monthly royalty/licence fee increased to Rs.30,00,000/- plus applicable GST.
Clause 20 of the agreement permitted Hannu Steels to terminate the arrangement by giving three months’ advance written notice in the event of breach, non-feasibility, non-viability or any other unforeseen reason, while continuing royalty payments during the notice period. On 03.06.2024, the Commission for Air Quality Management directed closure of Hannu Steels’ manufacturing unit under Section 12(2)(xi) of the Commission for Air Quality Management in National Capital Region and Adjoining Areas Act, 2021. Hannu Steels thereafter issued a termination notice dated 10.06.2024 invoking Clause 20 and stating that the agreement would terminate with effect from 10.09.2024.
