Does Section 35(1)(d) of IBC entitle a Liquidator to grant sub-leases over properties not owned by the Corporate Debtor? – Prabhat Jain, Liquidator of Narmada Cereal Pvt. Ltd. Vs. MP Industrial Development Corporation Ltd. and Ors. – NCLAT New Delhi
The Hon’ble NCLAT held that the Section 35(1)(d) of the Code does not entitles a Liquidator to grant sub-leases over properties not owned by the Corporate Debtor and therefore Section 238 of the Code cannot be interpreted in a manner that has the effect of overriding the Respondent No. 1 duty to enforce the relevant Rules on how public lands are to be regulated.