Raj Builders vs Raj Oil Mills Limited & Anr
- CitationCompany Appeal (AT) (Insolvency) No. 304 of 2018
Ratio decidendi
The rule this decision rests on
Under Section 14 of the Insolvency and Bankruptcy Code, 2016, the moratorium bars a landlord from evicting the corporate debtor from the premises during the moratorium period, notwithstanding any agreement by the corporate debtor to vacate. Once the moratorium ends on approval of the resolution plan under Section 31, the landlord is free to seek eviction of the corporate debtor, if it remains in occupation, in accordance with law. The Adjudicating Authority is not a competent authority to pass an order for eviction, and it was therefore correct not to make such an order.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Raj Builders ...Appellant Vs Raj Oil Mills Limited & Anr. ....Respondents
Present:
For Appellant: Mr. Rahul Chitnis, Mr. Aaditya A Pande, Mr. Om Prakash Parihar and Mr. Himanshu Desai, Advocates.
For Respondents: Mr. Rajesh Bohra, Mr. Aditya Narayan and Mr. Uzair Kazi, Advocates. Mr. Bharat Sangal, Mr. Vikram Trivedi, Ms. Suchitra Valjee and Ms. Babita Kushwaha, Advocates for R-3.
ORDER
08.08.2018: The Appellant, the landlord of the registered office of 'Raj Oil Mills Ltd.' (Corporate Debtor) has challenged the order dated 19th April, 2018 passed by the Adjudicating Authority (National Company Law Tribunal) Mumbai Bench, whereby the Adjudicating Authority approved the resolution plan which was earlier approved by the Committee of Creditors. The grievance of the Appellant is that though the period of agreement for tenancy has come to an end and the Corporate Debtor had technically was required to hand over the possession of the premises, but the possession of the premises has not handed over to the Appellant
2. We have heard learned counsel for the Appellant and the Respondents and perused the records.
3. In terms of Section 14 of the Insolvency and Bankruptcy Code, 2016, during the period of moratorium the Appellant cannot evict the Corporate Debtor from the premises in question, even if during period of moratorium they have agreed to vacate it. The period of moratorium has come to an end on 19th April, -2-
2018 i.e. date of approval of resolution plan under Section 31, therefore, now it is open to the Appellant to get the Corporate Debtor evicted, if it is still in occupation, in accordance with law. However, as the Adjudicating Authority is not competent authority to pass any order for eviction, Adjudicating Authority rightly not passed any such order.
4. We make it clear that observations aforesaid should not be construed to be for finding that the Appellant is the Land lord or the Corporate Debtor is the Tenant of the premises, which can be decided by a court of competent jurisdiction. Appeal stands disposed of with aforesaid observations. No cost.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial) am/sk
Company Appeal (AT) (Insolvency) No. 304 of 2018
This page reproduces a public judgment and a summary of it. It is research material, not legal advice, and it is no substitute for advice from an advocate on your own facts.
Research this judgment with Miss Lucy
Ask what it holds, what has followed it, and what it means for your matter — in plain English, with the citations.
Try Miss Lucy free