TMI Blog2021 (5) TMI 1047X X X X Extracts X X X X X X X X Extracts X X X X ..... 2016. Further, it must be noted that the arbitral award was passed on the basis of rental agreement dated 17.08.2005 and subsequently on 03.07.2006 in pursuance of which a Plot No. B-481 situated at Industrial Area, Bhiwadi, Rajasthan admeasuring 8444 sq. mts consisting of building and vacant land was given to Corporate Debtor for its business purpose. The basic nature of transaction is not covered under financial debt. Rental lease agreement can be operational debt but not financial debt. In any case, the transactions which transpired between the parties does not partake the character of a Financial debt and as such the Applicant does not qualify to be a Financial Creditor in relation to the Corporate Debtor. The instant Application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PE Film, rigid PVC pipe, etc.) for 5 years and the Corporate Debtor was liable to pay the Applicant/Financial Creditor a monthly license fee of ₹50,000/- for the covered area and ₹0.50/- per sq. ft. for the open area subject to increase of 25% every 3 years, but the Corporate Debtor defaulted in paying the same from April 2007 onwards. In these circumstances arbitral dispute arose between the Applicant/Financial Creditor and the Corporate Debtor which culminated in Arbitral award dated 10.07.2019 passed by Sh. A.K. Garde, Ld. Sole Arbitrator and in the terms of said Arbitral award, the Corporate Debtor is liable to pay a sum of Rs. 55,37,797/- (i.e. monthly license fee from April 2007 to October 2009) and due license fee fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for both the parties. In the present case, the Applicant has submitted that the award was passed on 10.07.2019 and the same becoming enforceable on expiry of a period of 90 days thereafter and since the Corporate Debtor has failed to make the payment in terms of award, has committed default in terms of Section 7 of Insolvency and Bankruptcy Code, 2016. Further, it must be noted that the arbitral award was passed on the basis of rental agreement dated 17.08.2005 and subsequently on 03.07.2006 in pursuance of which a Plot No. B-481 situated at Industrial Area, Bhiwadi, Rajasthan admeasuring 8444 sq. mts consisting of building and vacant land was given to Corporate Debtor for its business purpose. The basic nature of transaction is not cover ..... X X X X Extracts X X X X X X X X Extracts X X X X
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