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BIREN VAISHNAV
Biotor Industries Limited (In Liquidation) Represented By Liquidator Mr. Sanjay Kumar Agarwal – Appellant
Versus
Gujarat Industrial Development Corporation – Respondent
Key Points: - The lease agreement, license agreement, and allotment letter should be read as coterminous contracts; termination of license and lease was in accordance with terms. (!) (!) - The petitioner's argument of violation of natural justice was dismissed due to lack of development on the land. (!) - The petition was dismissed and status quo to be maintained until 03.03.2023. (!) (!)
The court rejected the argument that NCLT cannot entertain matters under IBC and that GIDC proceedings under GPP Act are outside NCLT jurisdiction. (!) (!) (!)
Notices and actions under GPP Act were upheld as served on the company and property, and as per GPP Act provisions, overruling Transfer of Property Act considerations. (!) (!)
The contractual obligations and non-development on the allotted land supported termination under GPP Act. (!) (!)
Section 60(5)(c) IBC provides NCLT jurisdiction to decide questions arising out of insolvency proceedings; residuary power acknowledged but not extended to override mandatory statutory provisions. (!) (!) (!)
JUDGMENT :
1. RULE returnable forthwith.
2. The petitioner BIOTOR Industries Limited (in liquidation) (‘BIOTOR’ for short) has filed this petition challenging the order dated 28.12.2021 passed by the respondent GIDC terminating the license agreement, order dated 31.12.2021 terminating the lease deed and the notice dated 18.01.2022 under Section 5(1) of the Gujarat Public Premises (Eviction of Unauthorized Occupants) Act, 1972. (‘GPP Act’ for short).
3. Facts in brief indicate as under:
3.1 BIOTOR was previously known as Jayant Oils and Derivatives Limited. It was ordered to be liquidated vide order dated 31.12.2018 by the National Company Law Tribunal. The liquidation process accordingly commenced. The liquidator on 09.01.2019 made a public announcement accordingly. The erstwhile company had been allotted land being plot nos.02, Vilayat Industrial Estate, Bharuch, admeasuring 11,89,603 square meters. A license agreement was entered into on 20.01.2007 for development of an SEZ / Industrial Park. A lease agreement was entered into between the parties for a period of 99 years on 12.11.2008. By the impugned orders such lease deed is terminated and so is the license agreement and the pe
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