While insolvency resolution of a Corporate Debtor is going on and Moratorium is in force, the provision of section 14(1)(d) will be applicable and the owner cannot forcibly or otherwise recover the premises, which are in possession of the corporate debtor from a date prior to the date of initiation of CIRP – Supriyo Kumar Chaudhuri, Liquidator of JVL Agro Industries Ltd. Vs. Jhunjhunwala Oil Mills Ltd. – NCLAT New Delhi
NCLAT held that we also take note of the arguments presented by the Learned Counsel for JOML claiming that JOML is in financial distress and in order to relieve such distress, it proposed a one-time settlement to its bank State Bank of India and, in order to honour the one-time settlement, it proposes to sell of the ‘said premises’ to Rudra Realtech Limited. While the arguments made by the Learned Counsel for JOML could be correct insofar as any financial distress of the JOMC is concerned, we are of the clear view that while the insolvency resolution of the corporate debtor is going on and the moratorium is in force, the provision of section 14(1)(d) will be applicable and the owner cannot forcibly or otherwise recover the premises, which are in possession of the corporate debtor from a date prior to the date of initiation of CIRP.
