Tribunal rules for applicant in dispute over licence fees and termination of agreement.

The Tribunal ruled in favor of the applicant, a private limited company, in a dispute with the corporate debtor over non-payment of licence fees and termination of a leave and licence agreement. The Tribunal found the resolution professional's failure to decide on the applicant's claim to be an abuse of power and against public policy. It directed the resolution professional to hand over possession of the premises and pay the claim amount within a week, emphasizing the applicant's right to possession and entitlement to both licence fees and possession of the premises.

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Issues:
1. Dispute over non-payment of licence fees and termination of leave and licence agreement.
2. Resolution professional's failure to decide on applicant's claim.
3. Possession of premises and payment of claim amount.

Analysis:
1. The case involved a dispute between the applicant, a private limited company, and the corporate debtor regarding non-payment of licence fees leading to the termination of a leave and licence agreement. The applicant claimed that the corporate debtor defaulted in making payments from June 2018, despite reminders and termination notices. Consequently, the applicant filed a civil suit seeking possession of the premises and recovery of arrears amounting to Rs. 1,08,44,655. The admission of a petition against the corporate debtor under the Insolvency and Bankruptcy Code led to a moratorium, halting the civil suit between the parties.

2. The applicant filed a claim before the resolution professional, but the resolution professional failed to decide on the claim, citing pending clarifications and substantiations. The resolution professional raised objections, including discrepancies in the claim submission and the alleged failure of the applicant to come with clean hands due to unresolved repair disputes. The applicant, in response, denied the allegations and argued for the possession of the premises based on the termination notice and the absence of any clause regarding adjustment of repair costs in the agreement.

3. The Tribunal found the resolution professional's inaction regarding the applicant's claim to be an abuse of power and against public policy. Emphasizing the applicant's right to possession of the land, the Tribunal ruled in favor of the applicant, directing the resolution professional to hand over possession of the premises and pay the claim amount within a week. The Tribunal highlighted the automatic termination of tenancy rights upon non-payment of rent, emphasizing the landowner's entitlement to both licence fees and possession of the premises.

In conclusion, the Tribunal allowed the applicant's application, emphasizing the resolution professional's duty to promptly decide on claims and uphold the rights of the landowner in possession disputes.

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