Resolution Professional does not have right to inspect a third party’s property when the lease period had already expired and to take possession of the leased property by virtue of Section 14(1)(d) of IBC when the property was not under the possession of Corporate Debtor at the time of CIRP admission – Mrs. Durdana Aabid Ali and Ors. Vs. Vijay Kumar V Iyer RP of Future Retail Ltd. – NCLAT New Delhi
April 24, 2024
Hon’ble NCLAT held that RP cannot be said to have the right to inspect the subject property of a third party at a time when the lease period had already expired. The subject property could not be included in the list of assets of the Corporate Debtor since there is no subsisting contract between the Appellant and Corporate Debtor which would entitle the RP to claim any right, title or interest in the subject property. Section 14(1)(d) will not come to the rescue of the RP, since what is prohibited therein, is only the right of the Corporate Debtor not to be dispossessed but not the right to have renewal of the lease of such property. Under Section 14(1)(d) of IBC, recovery of any property by any owner or lessor which is occupied by the Corporate Debtor is prohibited. The purpose of moratorium is only to preserve the status quo but not to create a new right.