Issue of the Doctrine of Adverse Possession where Successful Buyer purchased the properties of the Corporate Debtor in Liquidation auction – P.G. Sales Corporation Vs. Laxmanbhai Mohanbhai Vegad and Ors. – NCLT Ahmedabad Bench
In this case, a Security Guard stated that he has been staying in the premises in a small room where he has been staying with his family (and has been working as security guard) for last 39 years and the corporate debtor/suspended management used to deduct the rent amount of the room situated at disputed premises. As he has been in peaceful, continuous, uninterrupted and unobstructed possession of room, he is entitled to own the premises on the basis of “The Doctrine of Adverse Possession” and the principles laid down by Hon’ble Supreme Court in various matters.
Hon’ble NCLT Ahmedabad Bench held that:
(i) At that time of confirming sale, the vacant possession of the premises were handed over to the applicant. As the vacant possession is handed over, it means that it was not occupied by any person at that time. After taking vacant possession from the liquidator it was duty of the purchaser to protect his properties. Therefore, now this cause will not fall within the ambit of liquidation process.
(ii) When the vacant possession was given to the applicant, the liquidator is no more responsible in the matter. So also, this Tribunal is not having jurisdiction to entertain the applications which fall outside the ambit of liquidation process.
