31/03/2021

The property occupied by the Corporate Debtor cannot be recovered by the Owner/ Lessor during the period of moratorium. What is material is that the property should be occupied by the Corporate Debtor which is interpreted as actual physical occupation of the property and not right or interest created in such property – Ms. Rajalakshmi Vardarajan Resolution Professional of Arudaavis Labs Pvt. Ltd. Vs. Mr. G. Dhananjaya Naidu – NCLAT New Delhi

NCLAT referring the case M/s Navbharat Castings LLP vs. M/s Moserbear India Ltd. & Anr (2018) ibclaw.in 148 NCLAT and  Rajendra K. Bhutta vs. Maharashtra Housing and Area Development Authority and held that it is abundantly clear that the property occupied by the Corporate Debtor cannot be recovered by the Owner/ Lessor during the period of moratorium. What is material is that the property should be occupied by the Corporate Debtor which is interpreted as actual physical occupation of the property and not right or interest created in such property. NCLAT held that in instant case, 180 days from the date of commencement of CIRP expired on 26th January, 2020 and since the Resolution Professional did neither apply for extension for CIRP beyond the ordinary period of 180 days nor was a Resolution Plan approved or liquidation order passed by the Adjudicating Authority before the expiry of CIRP period viz. 26th January, 2020, moratorium ceased to operate beyond 26th January, 2020. It is not in controversy that the Corporate Debtor has subsequently been pushed into liquidation in terms of order dated 12th January, 2021 passed by the Adjudicating Authority. Therefore, we find no force in the contention raised by the Appellant that the moratorium was in force on 4th November, 2020 when the impugned order came to be passed. It also emerges from record that the Appellant herself has admitted the claim of Respondent to the tune of Rs. 66,79,260/- for the period from 1st April, 2014 till 1st August, 2019 by relying on the lease agreement entered inter-se the parties. With prohibition in terms of moratorium having ceased to operate w.e.f. 26th January, 2020, Appellant cannot justifiably hold on to the leased premises nor resist payment of outstanding rental arrears for the CIRP period.

The property occupied by the Corporate Debtor cannot be recovered by the Owner/ Lessor during the period of moratorium. What is material is that the property should be occupied by the Corporate Debtor which is interpreted as actual physical occupation of the property and not right or interest created in such property – Ms. Rajalakshmi Vardarajan Resolution Professional of Arudaavis Labs Pvt. Ltd. Vs. Mr. G. Dhananjaya Naidu – NCLAT New Delhi Read Post »

It is duty of the Adjudicating Authority to allow the Applicant to complete the application or cure the defect before taking up the matter for consideration in regard to admission or otherwise of application under Section 9 – Chandralekha Constructions Pvt. Ltd Vs. Khandelwal Group Pvt. Ltd. – NCLAT New Delhi

NCLAT held that at the pre-admission stage and in terms of the impugned order the Adjudicating Authority has only allowed a defect to be cured as it was pointed out that the documents in the two applications seeking the initiation of CIRP got exchanged. To correct the error and rectify the defect, the Adjudicating Authority in terms of impugned order dated 4th March, 2021 allowed the application of Respondent (Operational Creditor) to rectify the defect by placing correct documents on record. There is no infirmity in the impugned order, it being the duty of the Adjudicating Authority to allow the Applicant to complete the application or cure the defect before taking up the matter for consideration in regard to admission or otherwise of application under Section 9.

It is duty of the Adjudicating Authority to allow the Applicant to complete the application or cure the defect before taking up the matter for consideration in regard to admission or otherwise of application under Section 9 – Chandralekha Constructions Pvt. Ltd Vs. Khandelwal Group Pvt. Ltd. – NCLAT New Delhi Read Post »

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