Ram Ratan Modi vs Pramod Kumar Jalan
- CitationCompany Appeal (AT) (Insolvency) No. 1522 of 2022
Ratio decidendi
The rule this decision rests on
Where a Resolution Professional has stated on affidavit that a property is not part of the Corporate Debtor's assets and that it will not transfer possession or create third-party rights in it during the CIRP, and the property does not belong to the Corporate Debtor and the Corporate Debtor has vacated it, the Adjudicating Authority may direct the Resolution Professional to hand over possession; any liability arising from continued occupation or expense in respect of such premises is to be met as a CIRP cost.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Sangita Fiscal Services Pvt. Ltd. & Ors. ...Appellant
Versus Duncan Industries Ltd. ...Respondent
Present: For Appellant: Advocate Azeem For Respondent:
ORDER
04.01.2023: Heard Learned Counsel for the Appellant.
2. This Appeal has been filed against the Order dated 14th September, 2022
passed by the Adjudicating Authority in I.A. No. 557(KB)2021. The Application
was filed by the Lessor seeking the possession of the Flat which was in the
possession of the Corporate Debtor and now in the possession of the Resolution
Professional. A reply was filed to the said I.A. in which Resolution Professional
made a statement in paragraph 9 which has been extracted by the Adjudicating
Authority in paragraph 3(b) which is to the following effect:
"b. In para 9 of this Affidavit reads as "It is submitted that the said property has not been included in the pool of assets of the Corporate Debtor by the Resolution Professional. Hence, the Resolution Professional shall not 2
transfer the possession of the property and/or create any third party rights on the said property during the course of the Corporate Insolvency Resolution Process of the Corporate Debtor."
3. The Adjudicating Authority after noticing the aforesaid statement made,
directed the Resolution Professional to hand over the possession of flat within
four weeks.
4. Learned Counsel for the Appellant submits that a suit has already been
filed for eviction which is pending in City Civil Court.
5. Be that as it may, when the asset does not belong to the Corporate Debtor
and as submitted by the Learned Counsel for the Appellant that earlier in the
premises, there was office of the Corporate Debtor which is now shifted, we are
of the view that the directions passed by the Adjudicating Authority for vacating
the premises cannot be faulted. The Resolution Professional can incur liability
in the CIRP if there is any requirement. Unnecessary incurring expenses and
costs is unnecessary burden which need to be paid as CIRP Cost. Thus, we see
no reason to interfere with the Impugned Order, the Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical)
Basant/nn
Company Appeal (AT) Ins. No. 1522 of 2022
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