In this case, a Clause 4.9.3 is included in the Resolution Plan which states that all litigation with respect to the title of the land shall stand extinguished upon approval of the resolution plan and all leasehold rights shall stand cancelled and revenue authority shall remove the name of third party from the revenue records upon the approval of the resolution plan etc.
Hon’ble NCLT Kolkata Bench held that it is a trite, axiomatic and settled law that the Adjudicating Authority is not a civil court to resolve a civil dispute, thus, cancellation or extinguishment of the leasehold right in question cannot be sought for at this forum. The lease, even if contrary to law, can only be determined by an appropriate forum of civil jurisdiction.
The Hon’ble Bench directed the RP to delete the clause 4.9.3 in the plan and/or refrain from inclusion of any clause in the resolution plan which contemplates cancellation and/or termination of the existing registered lease in favour of the Applicant, herein. Since the rights of the Corporate Debtor as a “lessor” passes on to the SRA as it steps into the shoes of the Corporate Debtor, an appropriate action may be taken including an action before a competent Court of law concerning the disputed lease mentioned at Clause 4.9.3 of the Resolution Plan.