Whether leasehold rights granted to Corporate Debtor by virtue of Registered Lease Deed is an ‘asset’ within the meaning of Section 18(f) of IBC or the said land be excluded from CIRP of Corporate Debtor – Shristi Infrastructure Development Corporation Ltd. Vs. Avishek Gupta, RP Sarga Hotel Pvt. Ltd. and Anr. – NCLAT New Delhi
Hon’ble NCLAT held that the leasehold rights which are owned by the Corporate Debtor consists of right to enjoy the immoveable property by virtue of Registered Lease Deed dated 31.03.2007. Explanation (a) to Section 18 of IBC does not come into way of the Corporate Debtor in enjoying the leasehold rights i.e. enjoyment of the property by virtue of Registered Lease Deed. We, thus, do not find any substance in the submission of the Appellant that the leasehold rights should be excluded from the assets of the corporate debtor. The leasehold rights which was granted to the Corporate Debtor by virtue of Registered Lease Deed dated 31.03.2007 is right to enjoy the property and erect building of the land is a right which is an ‘asset’ within the meaning of Section 18(f) and the said asset is owned by the corporate debtor by virtue of Registered Lease Deed.
