Back
2025 Supreme(Online)(NCLT) 4063
NATIONAL COMPANY LAW TRIBUNAL
Shri Prabhat Kumar, Member (Judicial), Shri Sushil Mahadeorao Kochey, Member (Technical)
MR. PANKAJ BHATTAD – Appellant
Versus
Mr. SHANOD DAS – Respondent
C.P.(IB) NO. 1180 (MB) OF 2022
For the Applicant: Adv. Utsav Mukherjee, Adv. Shivam Mehra, Adv. Saksham Ahuja, Adv. Mayukh Roy, Adv. Bhaskar
For the Respondent: Adv. Samiksha Parekh
The NCLT holds jurisdiction under the Insolvency and Bankruptcy Code, allowing the Resolution Professional to terminate agreements violating statutory usage, despite claims of exclusive civil jurisdiction.
Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 60(5) - Corporate Insolvency Resolution Process initiated against the Corporate Debtor; Applicant seeks eviction of Respondent from property leased under violative agreement - Dispute over jurisdiction of NCLT and contractual rights; Tribunal finds Respondent's claims meritless - Eviction order granted. (Paras 1-22)
(B) Jurisdiction - The NCLT holds jurisdiction to address disputes involving properties owned by the corporate debtor and cannot decline based on Civil or Rent laws. (Paras 17-21)
Facts of the case:
The Applicant, acting as Resolution Professional, seeks to evict the Respondent from unlawfully occupied premises under a Leave and License agreement, found in violation of sanctioned plans by RERA.
Findings of Court:
The Leave and License agreement is invalid as the usage of rented property for commercial purposes violates sanctioned plans, justifying eviction by the Resolution Professional.
Issues: The main issue is whether the Tribunal has jurisdiction over disputes involving a corporate debtor as lessor and the validity of the Leave and License agreement.
Ratio Decidendi: The Tribunal held that despite the Respondent’s investment in the premises, the lease was violative, allowing the Resolution Professional to terminate. Jurisdiction is affirmed under Section 60(5) of the Code despite claims of exclusivity under state rent laws.
Result: Application allowed; the Respondent directed to vacate property.
| Table of Content |
|---|
| 1. application for eviction during insolvency resolution. (Para 1 , 2) |
| 2. violation of rera plans in lease agreement. (Para 3 , 4) |
| 3. respondent's claims on jurisdiction based on prior agreements. (Para 5 , 6) |
| 4. court observations on permanent structures and usage. (Para 8 , 12) |
| 5. authority to terminate based on contractual compliance. (Para 20 , 21) |
ORDER
1. This Application IA 852/2025 was filed by Mr. Pankaj Bhattad (Applicant), the Resolution Professional against the Mr. Shanod Das, under Section 60 (5) of The Insolvency and Bankruptcy Code, 2016 ("Code") in the Corporate Insolvency Resolution Process in case of Gigeo Construction Company Private Limited (“Corporate Debtor”), seeking following reliefs:
a. Direct the Respondent to vacate the Property situated at the 4th floor of Pulse Care building, Buti Road, City Survey No. 3110, 3111 & 3112 of Khasra No. 317 admeasuring around 1,580 sq. mtrs., (equivalent to approx. 17,000 Sq. Ft.), having Mouza Sitabuldi situated at Munje Square, Sitabuldi Nagpur Tahsil Maharashtra 440012; and.
b. Pass any order/ orders as deemed fit and proper.
2. The Corporate Insolvency Resolution Process (" CIRP") of the Corporate Debtor was initiated vide an order dated 04.06.2024 passed by this Adjudicating Authority on an application being C.P.(IB) No. 1180/MB/2022 filed by the Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("the Code"). Vide the said order, the Adjudicating Authority appointed Mr. Ritesh R. Mahajan, a registered Insolvency Professional having Registration Number IBBI/IPA-002/IPN00048/2017- 18/10132 as the Interim Resolution Professional ("IRP") of the Corporate Debtor. Thereafter, the Adjudicating Authority by order dated 02.08.2024 in I.A. 3792/2024 appointed the Applicant as the Resolution Professional of the Corporate Debtor.
3. It is stated that, during the collation of documents and information of the Corporate Debtor, the Applicant found that the Corporate Debtor and the Respndent had entered into a Leave and License agreement dated 01.5.2023 whereby the Corporate Debtor had leased out its property situated at the terrace above 4th floor of the Pulse Care building ("the Property") to Mr. Shanod Das for a period of 3 years commencing from 01.05.2023 and ending on 30.04.2026. Upon verification of documents available with the undersigned and on perusal of the approved sanctioned plans by the Real Estate Regulatory Authority ("RERA"), it was observed that approval was received for commercial utilization of the Ground Floor, 1st and the 2nd Floors of the Pulse Care building, and the 3rd and 4th Floors were designated car parking areas. Consequently, no commercial usage of the 3rd and 4th Floors of the Pulse Care building was ever permitted.
4. It is case of the applicant that the said Leave and License agreement is in direct violation of the plans sanctioned by RERA. It is submitted by the applicant that the Respondent was asked to vacate the leased premises by 25.10.2024 vide email communication dated 14.10.2024 on the ground that the units constructed above the 2nd floor at Fortune Mall and Pulse Care are considered only for car parking and was again reminded vide email dated 17.10.2024, however, despite receiving several email reminders the Respondent neither gave any response nor vacated the Property. Thus, the Applicant terminated said Leave and License agreement dated 01.10.2022 vide notice dated 28.10.2024 by giving a notice period of 1 month to the Respondent to vacate the said Property. The Respondent in its reply dated 25.11.2024 refused to vacate the Property and alleged misconduct by the erstwhile management of the Corporate Debtor. The Applicant again sent a communication dated 14.12.2024 to the aforesaid reply denying the contentions of the Respondent and reiterating the Applicant's position that no commercial usage of the 3rd and 4th Floors of the Pulse Care building was ever permitted in the sanctioned plans of RER.A. The
