Apeejay Trust Vs. Aviva Life Insurance Co. India Ltd. [IB-1885(ND) 2019] - Synopsis
Team SoOLEGAL 3 Mar 2021
FACTS:
In this case, Apeejay Trust Vs. Aviva Life Insurance Co. India Ltd. [IB-1885(ND) 2019], a case was filed by Apeejay Trust, in which the National Corporate Law Tribunal had ordered the commencement of insolvency proceedings against Aviva Life Insurance. Justice RD Khare and Justice Sumita Purkayastha, had allowed the plea against Aviva Life Insurance and also appointed an interim resolution specialist to handle the company's day-to-day business. Apeejay Trust, which had leased its premises in Mumbai (Vashi) to Aviva Life Insurance, alleged that the Corporate Debtor had defaulted on Rs/- 27.67 lakh for not receiving service tax and licence fees for the premises. According to the Operational Creditor, the company in question had not paid the registration fee, car parking, maintenance/repair charge and service levy. It made its last payment in this respect on 5th October 2017. In the course of the trial, Aviva had challenged the merit of the plea of the Apeejay Trust on the basis that Aviva is an insurance firm and thus being a financial service provider, Insolvency Bankruptcy Code cannot be brought against it.

DECISION OF THE COURT:  
The National Company Law Tribunal had considered the application of the Operational Creditor and directed to initiate Corporate Insolvency Resolution Process against the Corporate Debtor. The Bench had also declared a moratorium, pursuant to Section 14 of the Insolvency and Bankruptcy Code, 2016, to shield the company from its lenders during the process.
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