2025 LiveLaw (SC) 774 IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION SANJAY KUMAR; J., SATISH CHANDRA SHARMA; J.

CIVIL APPEAL NO. 12812 OF 2024; August 05, 2025 Sincere Securities Private Limited & Ors. versus Chandrakant Khemka & Ors.

Insolvency and bankruptcy Code, 2016 - Section 62 – Appeal - Section 14 - Moratorium - IBC Moratorium doesn’t bar voluntary surrender of corporate debtor’s leased property to lessor if retaining the asset is deemed unviable and the Committees of Creditors (CoC) endorses decision - Held that commercial wisdom of the CoC should be given primacy during CIRP (Corporate Insolvency Resolution Process) - this case was distinguished from a simple recovery of property barred by Section 14(1)(d) of the IBC, as the CoC and Resolution Professional themselves desired to return the property due to adverse financial implications of retaining it - The respondent was stalling the process for “undisclosed and extraneous reasons” - Section 14(1)(d) of the IBC states that once the adjudicating authority, by order, declares a moratorium, it would prohibit, amongst other acts, the recovery of any property by an owner or lessor where such property is occupied by or is in the possession of the corporate debtor - Set aside NCLAT’s order and restored NCLT’s order. [Paras 9, 10]

For Appellant(s) Mr. Siddharth Bhatnagar, Sr. Adv. Mr. Ashish Choudhury, AOR Mr. Aditya Sidhra, Adv. Mr.

Akash Agarwal, Adv. Ms. Sulekha Agarwal, Adv. Mr. Abhishek Arora, Adv. Ms. Prachi Grover, Adv.

For Respondent(s) Ms. Arundhati Katju, Sr. Adv. Mr. Aman Gupta, AOR Mr. Anup Kashyap, Adv. Mr.

Shambo Nandy, AOR Mr. Partha Sil, AOR Mr. Utkarsh Dwivedi, Adv. Mr. Srijit Datta, Adv.

J U D G M E N T

SANJAY KUMAR, J

1

1. This appeal, under Section 62 of the Insolvency and Bankruptcy Code, 2016 , calls in question the order dated 12.11.2024 passed by the National Company Law Appellate

2 Tribunal, Principal Bench, New Delhi , allowing Company Appeal (AT) (Insolvency) No. 1064 of 2023 filed by Chandrakant Khemka, respondent No. 1, and setting aside the order

3 dated 07.08.2023 of the National Company Law Tribunal, Kolkata Bench , in CP(IB) No. 1377/KB/2020. Thereby, the NCLT had directed delivery of possession of the property in question to the appellants herein.

2. Facts, relevant to this adjudication, need recounting at some length. On 13.02.2019, a Memorandum of Understanding was executed by and between Nandini Impex Private Limited, which became a corporate debtor under the IBC thereafter, represented by its Director, Chandrakant Khemka, on the one hand, and Noble Dealcom Private Limited along with Jodhpur Properties and Finance Private Limited, appellant Nos. 2 and 3 herein, on the other hand, whereby Nandini Impex Private Limited availed financial assistance to the tune of 3₹ crores from them and secured the same through deposit of the title deeds relating to the rear portion of the ground floor of White House, 1/18-20, Rani Jhansi Road, New Delhi. Another Memorandum of Understanding was executed by Nandini Impex Private Limited on 15.02.2019 with Sincere Securities Private Limited, appellant No.1 herein, for availing a loan of 3 crores from it and the same was secured₹ through deposit of the title deeds of the front portion of the ground floor of White House. As Nandini Impex Private Limited failed to repay the loans, separate conveyance deeds were executed by it on 27.02.2020 transferring the title over the front and rear portions of the ground floor of White House to the appellants respectively. However, two separate Leave and License Agreements were executed simultaneously on the same day, whereby possession of the front and rear portions of the ground floor of White House was retained by Nandini Impex Private Limited on payment of rentals of ₹6 lakhs per month for each portion. Owing to the default in payment of the rentals, the appellants terminated the Leave and License Agreements on 08.05.2020. Eviction suits were also instituted by the appe