The principal bench of New Delhi on March 09, 2022, in the matter of Jaipur Trade Expo centre Pvt. Ltd. v. Metro Jet Airways Pvt. Ltd. referred the following question for consideration by the larger bench:

“Whether claim of the Licensor for payment of License Fee for use and occupation of Immovable Premises for commercial purposes is a claim of ‘Operational Debt’ within the meaning of Section 5(21) of the Code?”

In the instant case, the counsel for appellant submitted that the judgment dated March 07, 2022, which was delivered in the matter of Mr. M. Ravindranath Reddy v. Mr. G. Kishan & Ors. is distinguishable. It was further submitted that the facts of the appellant’s case is that there was warm shell building and services, which is clearly distinguishable from the facts of the above case and it is ‘operational debt’ within the meaning of Section 5(21) of the.

The counsel for the Respondent submitted that there are other judgments taking the same view which has been taken in Mr. M. Ravindranath Reddy v. Mr. G. Kishan & Ors. case.

In the instant case, the two members Bench of Judgement has expressed doubts about the correctness of the law laid down by three members Bench in Mr. M. Ravindranath Reddy v. Mr. G. Kishan & Ors. case on the ground that it did not notice the judgement of the Supreme Court in the case Mobilox Innovation (P) Ltd. v. Kirusa Software (P) Ltd.

The appellate tribunal referred the case to larger bench and observed:

“We are thus of the view that two aforesaid quoted questions framed in Referring Judgment dated 07th March 2022 be placed for consideration before the ‘Larger Bench’. Let the matter be placed before the Hon’ble Chairperson on the administrative side to constitute a ‘Larger Bench’ for considering the questions as framed in the Judgment dated 07th March 2022.”