In a recent order passed by the National Company Law Appellate
Tribunal, Principal Bench, New Delhi
("NCLAT") in Somesh Choudhary v
Knight Riders Sports Private Limited & Anr. under Company
Appeal (AT) Insolvency No. 501 of 2021, the NCLAT dismissed
the appeal filed under Section 61 of the Insolvency and Bankruptcy
Code, 2016 ("Code") against the order
dated 5 July 2021 passed by the National Company Law Tribunal, New
Delhi ("NCLT Order"), and held that the
claims arising out of the grant of an exclusive license to use
intellectual property rights fall within the ambit of the
definition of operational debt.
Background
Global Fragrances Pvt Ltd ("Corporate
Debtor") had entered into a licensing agreement with
Knight Riders Sports Private Limited
("Respondent") whereby the Respondent
had granted exclusive rights and allowance to the Corporate Debtor
to use the trademark 'KKR', to manufacture,
distribute and advertise licensed products including deodorants,
hair
