The Leasehold Right is an Intangible Asset of the Corporate Debtor and that the Resolution Professional is empowered under Section 18(f) of the Code to take control and custody of any Asset over which the Corporate Debtor has the Ownership Right – New Okhla Industrial Development Authority Vs. Mr. Amit Agarwal RP of Boulevard Projects Pvt. Ltd. – NCLAT New Delhi
NCLAT held that the Leasehold Rights is an Asset under Intangible Assets falling within the ambit of Section 18(f)(iv). It is the consistent stand of the Respondent that ‘the said Plot is not owned by the Corporate Debtor, but it has only Leasehold Rights over it’. We are of the considered view that the Leasehold Rights accrued to the Corporate Debtor vide the Lease Deed, is a right vested with the Corporate Debtor and is an Intangible Assets and the ownership is only to the extent of these Leasehold Rights based on which the Corporate Debtor can be continued as a Going Concern. It is also significant to mention that the Appellant has never initiated any proceedings or chosen to exercise their rights to invoke any of the Clauses of the Lease Deed for cancellation of the subject Deed.
