Highway Star Rest And Recreation Pvt. Ltd. Vs Maiyas Restaurants Private Limited (NCLT Bengaluru)
The National Company Law Tribunal (NCLT), Bengaluru Bench, admitted a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by an operational creditor seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor for default in payment of an operational debt of ₹2,49,57,627, comprising principal and interest. The operational creditor stated that the parties had entered into a revenue-sharing arrangement under which the corporate debtor operated a restaurant from the creditor’s premises. Monthly invoices were raised towards revenue sharing or minimum guaranteed rent, utility reimbursements, and marketing charges. A total of 194 invoices amounting to ₹1,57,00,516 were issued, and the corporate debtor acknowledged both the invoices and the outstanding liability. Despite repeated requests and a statutory demand notice issued under Section 8 of the IBC, the dues remained unpaid. In response to the demand notice, the corporate debtor sought approximately six months’ time to settle the outstanding amount.
In its objections, the corporate debtor did not dispute the operational debt or the amount claimed. It admitted liability of ₹2,49,57,627, including principal and interest, but submitted that payment could not be made because of severe financial constraints. It also stated that the delay was neither intentional nor deliberate and emphasized its intention to clear the admitted dues. The corporate debtor further relied upon periodic letters acknowledging the debt.
