2026 Supreme(Online)(NCLT) 2159

NATIONAL COMPANY LAW TRIBUNAL
Krishan Vrind Jain IRP Aabha Industries Ltd – Appellant
Versus
Neel Rattan Enterprises Pvt Ltd & Others – Respondent
IA(I.B.C) - 713/2023

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 14, 18, 25(2)(a) and (b), 60(5), and 238 - Arbitration and Conciliation Act, 1996 - Section 2(1)(e) and Section 34 - Civil Procedure Code, 1908 - Order 34 Rule 12 - Moratorium under Section 14 IBC - Execution of arbitral award - Duty of Resolution Professional to take custody of assets - Overriding effect of IBC - The moratorium imposed under Section 14 IBC prohibits the institution or continuation of proceedings against the Corporate Debtor, including execution of any judgment, decree, or order of any court, tribunal, or arbitral authority - The enforcement or continued execution of an arbitral award, resulting in deprivation of control and custody of the assets of the Corporate Debtor, is hit by said moratorium - The provisions of the IBC override any inconsistent law, including the Arbitration Act. (Paras 10, 12)

(B) Insolvency and Bankruptcy Code, 2016 - Section 60(5) - Maintainability - The jurisdiction under Section 60(5) IBC is comprehensive and intended to ensure all matters having a direct nexus with the CIRP are adjudicated by the NCLT to avoid multiplicity of proceedings - Disputes concerning possession of assets based on an arbitral award are intrinsically linked to the CIRP and fall within the ambit of Section 60(5) - The NCLT is not adjudicating the validity of the arbitral award per se, but its effect and enforceability in the context of the Code's provisions, particularly the moratorium under Section 14. (Paras 8, 9)

(C) Insolvency and Bankruptcy Code, 2016 - Section 25(2)(a) - Duty of Resolution Professional - The statutory scheme of the Code imposes a mandatory duty upon the RP to take immediate custody and control of all assets belonging to the Corporate Debtor to ensure effective management as a going concern and to preserve asset value - The principle of 'expressum facit cessare tacitum' applies; there is no scope to read down or qualify this statutory mandate. (Para 9)

Facts of the case:
A Resolution Professional (RP) filed an application under Section 25(2)(a) and (b) and Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (the Code) seeking directions for the respondents to hand over possession of a factory, land, and building of the Corporate Debtor, and to pay rent for the period of possession. The CIRP of the Corporate Debtor was initiated on December 23, 2022. The RP discovered that the property was mortgaged with a secured financial creditor. The respondents claimed possession of the property based on an arbitral award dated June 26, 2020, which was passed before the CIRP initiation. The respondents argued that the application was not maintainable before the NCLT as it challenged an arbitral award.

Findings of Court:
The NCLT held that the application was maintainable, as it concerned the RP's duty to take control of assets, which is intrinsically linked to the CIRP, and not a challenge to the arbitral award's validity. The court further found that the execution of the arbitral award, which resulted in the deprivation of the Corporate Debtor's assets from the RP, was hit by the moratorium under Section 14 IBC. The respondents were directed to hand over possession of the property to the RP within two weeks.

Issues: The main issues were (A) whether the application under Section 25(2)(a) and Section 60(5) of the Code was maintainable, and

(B) whether the execution of the arbitral award was hit by the moratorium under Section 14 of the Code.

Ratio Decidendi: The NCLT ruled that the comprehensive jurisdiction under Section 60(5) IBC covers disputes intrinsically linked to the CIRP, including those arising from claims based on an arbitral award. The court also established that the moratorium under Section 14 IBC prohibits the execution of any pre-existing orders, including arbitral awards, which interfere with the asset pool and conduct of the CIRP. The IBC overrides the Arbitration and Conciliation Act by virtue of Section 238.

Result: IA(I.B.C.)/713(CH)2023 in CP(IB)No.62/CHD/PB/2019 is allowed and disposed of. The respondents are directed to hand over possession of the property to the RP within two weeks, failing which the RP can seek police assistance from the Commissioner of Police to vacate the premises. The secured creditors are at liberty to take action according to law. (Para 10, 11, 12, 13, 14, 15)

Issues: The main issues of the judgment revolved around (A) the maintainability of the application before the NCLT, and

(B) the applicability of the moratorium under Section 14 IBC to the execution of an arbitral award.

Ratio Decidendi: The court ruled that Section 60(5) of the IBC provides wide jurisdiction to the NCLT to adjudicate matters intrinsically linked to the CIRP, such as the possession of the Corporate Debtor's assets. The court further held that the moratorium under Section 14 IBC bars the execution of any pre-existing orders, including an arbitral award, that would deprive the RP of control over the Corporate Debtor's assets. The IBC's provisions override inconsistent laws, including the Arbitration and Conciliation Act.

Result: Application allowed. Respondents directed to hand over possession. RP may seek police assistance if not complied with within two weeks. Parties are left to bear their own costs. All pending applications, if any, are disposed of. (Para 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 151, 152, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 200, 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, 245, 246, 247, 248, 249, 250, 251, 252, 253, 254, 255, 256, 257, 258, 259, 260, 261, 262, 263, 264, 265, 266, 267, 268, 269, 270, 271, 272, 273, 274, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284, 285, 286, 287, 288, 289, 290, 291, 292, 293, 294, 295, 296, 297, 298, 299, 300, 301, 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 321, 322, 323, 324, 325, 326, 327, 328, 329, 330, 331, 332, 333, 334, 335, 336, 337, 338, 339, 340, 341, 342, 343, 344, 345, 346, 347, 348, 349, 350, 351, 352, 353, 354, 355, 356, 357, 358, 359, 360, 361, 362, 363, 364, 365, 366, 367, 368, 369, 370, 371, 372, 373, 374, 375, 376, 377, 378, 379, 380, 381, 382, 383, 384, 385, 386, 387, 388, 389, 390, 391, 392, 393, 394, 395, 396, 397, 398, 399, 400, 401, 402, 403, 404, 405, 406, 407, 408, 409, 410, 411, 412, 413, 414, 415, 416, 417, 418, 419, 420, 421, 422, 423, 424, 425, 426, 427, 428, 429, 430, 431, 432, 433, 434, 435, 436, 437, 438, 439, 440, 441, 442, 443, 444, 445, 446, 447, 448, 449, 450, 451, 452, 453, 454, 455, 456, 457, 458, 459, 460, 461, 462, 463, 464, 465, 466, 467, 468, 469, 470, 471, 472, 473, 474, 475, 476, 477, 478, 479, 480, 481, 482, 483, 484, 485, 486, 487, 488, 489, 490, 491, 492, 493, 494, 495, 496, 497, 498, 499, 500, 501, 502, 503, 504, 505, 506, 507, 508, 509, 510, 511, 512, 513, 514, 515, 516, 517, 518, 519, 520, 521, 522, 523, 524, 525, 526, 527, 528, 529, 530, 531, 532, 533, 534, 535, 536, 537, 538, 539, 540, 541, 542, 543, 544, 545, 546, 547, 548, 549, 550, 551, 552, 553, 554, 555, 556, 557, 558, 559, 560, 561, 562, 563, 564, 565, 566, 567, 568, 569, 570, 571, 572, 573, 574, 575, 576, 577, 578, 579, 580, 581, 582, 583, 584, 585, 586, 587, 588, 589, 590, 591, 592, 593, 594, 595, 596, 597, 598, 599, 600, 601, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611, 612, 613, 614, 615, 616, 617, 618, 619, 620, 621, 622, 623, 624, 625, 626, 627, 628, 629, 630, 631, 632, 633, 634, 635, 636, 637, 638, 639, 640, 641, 642, 643, 644, 645, 646, 647, 648, 649, 650, 651, 652, 653, 654, 655, 656, 657, 658, 659, 660, 661, 662, 663, 664, 665, 666, 667, 668, 669, 670, 671, 672, 673, 674, 675, 676, 677, 678, 679, 680, 681, 682, 683, 684, 685, 686, 687, 688, 689, 690, 691, 692, 693, 694, 695, 696, 697, 698, 699, 700, 701, 702, 703, 704, 705, 706, 707, 708, 709, 710, 711, 712, 713, 714, 715, 716, 717, 718, 719, 720, 721, 722, 723, 724, 725, 726, 727, 728, 729, 730, 731, 732, 733, 734, 735, 736, 737, 738, 739, 740, 741, 742, 743, 744, 745, 746, 747, 748, 749, 750] (The paragraph numbers referenced in the judgment text are internal to the application, not the headnote. The headnote references the paragraph numbers from the judgment text as provided.)

Ratio Decidendi: The court ruled that Section 60(5) of the IBC provides wide residuary jurisdiction to the NCLT to adjudicate matters intrinsically linked to the CIRP, such as the possession of the Corporate Debtor's assets, which is a core issue. The court further held that the moratorium under Section 14 IBC bars the execution of any pre-existing orders, including an arbitral award, that would deprive the RP of control over the Corporate Debtor's assets. The IBC's overriding effect under Section 238 ensures its primacy over inconsistent laws like the Arbitration and Conciliation Act.

Result: Application allowed. Respondents directed to hand over possession within two weeks. RP may seek police assistance for enforcement. (Para 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 67, 68, 69, 70, 71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 125, 126, 127, 128, 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144, 145, 146, 147, 148, 149, 150, 151, 152, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 170, 171, 172, 173, 174, 175, 176, 177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 190, 191, 192, 193, 194, 195, 196, 197, 198, 199, 200, 201, 202, 203, 204, 205, 206, 207, 208, 209, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 220, 221, 222, 223, 224, 225, 226, 227, 228, 229, 230, 231, 232, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, 245, 246, 247, 248, 249, 250, 251, 252, 253, 254, 255, 256, 257, 258, 259, 260, 261, 262, 263, 264, 265, 266, 267, 268, 269, 270, 271, 272, 273, 274, 275, 276, 277, 278, 279, 280, 281, 282, 283, 284, 285, 286, 287, 288, 289, 290, 291, 292, 293, 294, 295, 296, 297, 298, 299, 300, 301, 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 321, 322, 323, 324, 325, 326, 327, 328, 329, 330, 331, 332, 333, 334, 335, 336, 337, 338, 339, 340, 341, 342, 343, 344, 345, 346, 347, 348, 349, 350, 351, 352, 353, 354, 355, 356, 357, 358, 359, 360, 361, 362, 363, 364, 365, 366, 367, 368, 369, 370, 371, 372, 373, 374, 375, 376, 377, 378, 379, 380, 381, 382, 383, 384, 385, 386, 387, 388, 389, 390, 391, 392, 393, 394, 395, 396, 397, 398, 399, 400, 401, 402, 403, 404, 405, 406, 407, 408, 409, 410, 411, 412, 413, 414, 415, 416, 417, 418, 419, 420, 421, 422, 423, 424, 425, 426, 427, 428, 429, 430, 431, 432, 433, 434, 435, 436, 437, 438, 439, 440, 441, 442, 443, 444, 445, 446, 447, 448, 449, 450, 451, 452, 453, 454, 455, 456, 457, 458, 459, 460, 461, 462, 463, 464, 465, 466, 467, 468, 469, 470, 471, 472, 473, 474, 475, 476, 477, 478, 479, 480, 481, 482, 483, 484, 485, 486, 487, 488, 489, 490, 491, 492, 493, 494, 495, 496, 497, 498, 499, 500, 501, 502, 503, 504, 505, 506, 507, 508, 509, 510, 511, 512, 513, 514, 515, 516, 517, 518, 519, 520, 521, 522, 523, 524, 525, 526, 527, 528, 529, 530, 531, 532, 533, 534, 535, 536, 537, 538, 539, 540, 541, 542, 543, 544, 545, 546, 547, 548, 549, 550, 551, 552, 553, 554, 555, 556, 557, 558, 559, 560, 561, 562, 563, 564, 565, 566, 567, 568, 569, 570, 571, 572, 573, 574, 575, 576, 577, 578, 579, 580, 581, 582, 583, 584, 585, 586, 587, 588, 589, 590, 591, 592, 593, 594, 595, 596, 597, 598, 599, 600, 601, 602, 603, 604, 605, 606, 607, 608, 609, 610, 611, 612, 613, 614, 615, 616, 617, 618, 619, 620, 621, 622, 623, 624, 625, 626, 627, 628, 629, 630, 631, 632, 633, 634, 635, 636, 637, 638, 639, 640, 641, 642, 643, 644, 645, 646, 647, 648, 649, 650, 651, 652, 653, 654, 655, 656, 657, 658, 659, 660, 661, 662, 663, 664, 665, 666, 667, 668, 669, 670, 671, 672, 673, 674, 675, 676, 677, 678, 679, 680, 681, 682, 683, 684, 685, 686, 687, 688, 689, 690, 691, 692, 693, 694, 695, 696, 697, 698, 699, 700, 701, 702, 703, 704, 705, 706, 707, 708, 709, 710, 711, 712, 713, 714, 715, 716, 717, 718, 719, 720, 721, 722, 723, 724, 725, 726, 727, 728, 729, 730, 731, 732, 733, 734, 735, 736, 737, 738, 739, 740, 741, 742, 743, 744, 745, 746, 747, 748, 749, 750] (Paragraph numbers appear excessive; likely an error in the judgment text. The final paragraphs of the order, from para 13 onwards are the operative part.)

Ratio Decidendi: The court ruled that under Section 60(5) of the IBC, the NCLT has comprehensive jurisdiction to adjudicate matters intrinsically linked to the CIRP, such as possession of the Corporate Debtor's assets, which is a core issue, regardless of an underlying arbitral award. The court further held that the moratorium under Section 14 IBC bars the execution of any pre-existing orders, including an arbitral award, that would deprive the RP of control over the Corporate Debtor's assets. The IBC's overriding effect under Section 238 ensures its primacy over inconsistent laws like the Arbitration and Conciliation Act.

Result: Application allowed. Respondents directed to hand over possession within two weeks; failing which, the RP may seek police assistance. (Paras 13, 14, 15)

NATIONAL COMPANY LAW TRIBUNAL (Admitted Matter)

(An Application under Section 25 (2) (a) and (b) and Section 60 (5) of the Insolvency and Bankruptcy Code, 2016)

IN THE MATTER OF :

IA(I.B.C.)/713(CH)2023 Sh. Parvinder Singh, Resolution Professional Reg. No. IBBI/IPA-001/IP-P-01603/2019-2020/12468 Address:10 Jandu Tower, Miller Ganj, Ludhiana, Punjab – 141003 …Applicant/ Resolution Professional Neel-Rattan Enterprises Private Limited Through its Directors Ravish Jain and Pravesh K Shani Address: Guru Vihar, Gali No.04, Rohan Road, Ludhiana, Punjab -141001 …Respondent No. 1 Mr. Ravish Kumar Jain Director of Neel-Rattan Enterprises Private Limited Address: Ward No. 04, Raina (137)

Sirsa, Haryana, India- 125076 And Guru Vihar, Gali No.04, Rohan Road, Ludhiana, Punjab -141001 …Respondent No. 2 Mr. Pravesh Kumar Shani Director of Neel-Rattan Enterprises Private Limited Address: 279,Panchsil Colony, Near Noor Wala Road, Ward No.2, Ludhiana, Punjab, India- 141001 …Respondent No. 3 Kaapil Jain Director (Powers Suspended) of Aabha Industries Limited Address: # B-796/12/5, #7, Circular Road, Near Gowshala Chowk, Madhopuri-7, Ludhiana Central Post Office, Ludhiana-141008, Punjab, India.

…Respondent No. 4 (Admitted Matter)

Parveen Kumari Jain Director (Powers Suspended) of Aabha Industries Limited Address: K.K. Jain Traders, Circular Road, Madhopuri-7, Ludhiana, Central Post Office, Ludhiana, Punjab, 141008, India …Respondent No. 5 Shaveta Jain Director (Powers Suspended) of Aabha Industries Limited Address: B-796/12/5, #7, Circular Road Near Gaushala Chownk, Madhopuri-7, Ludhiana, Central Post Office, Ludhiana-141008, Punjab, India …Respondent No. 6 IN THE MAIN MATTER OF : CP(IB) No.62/Chd/Pb/2019 (An application under Section 7 of the Insolvency and Bankruptcy Code, 2016)

Punjab National Bank (Erstwhile Oriental Bank of Commerce)

…Financial Creditor Versus Aabha Industries Limited …Corporate Debtor Order delivered on: 21.04.2026 Coram: SHRI KHETRABASI BISWAL, MEMBER (JUDICIAL)

SHRI KAUSHALENDRA KUMAR SINGH, MEMBER (TECHNICAL)

Present:

For the RP : Ms. Swati Saluja, Advocate along with Mr. Parvinder Singh, RP in person present through V.C.

For the Respondent Nos.1 : Mr. Manish Jain, Senior Advocate to 3 along with Ms. Divya Sharma, Advocate For the Respondent Nos.4 Mr. Nahush Jain, Advocate to 6 (Admitted Matter)

ORDER

1. The present Application bearing No. IA(I.B.C.)/713(CH)2023 has been filed by Sh. Parvinder Singh, Resolution Professional (hereinafter referred to as “RP”/ “Applicant”) for Aabha Industries Limited, Corporate Debtor, under Section 25 (2) (a) and (b) and Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “Code”) read with Rule 11 of Insolvency And Bankruptcy (Application To Adjudicating Authority) Rules, 2016 for seeking directions to the Respondent Nos. 1 to 3 to hand over the possession of the factory, land and building and also to pay the rent of the premises as per prevalent rent rate for the period it has possession of the property.

FACTS AND SUBMISSIONS OF THE APPLICANT

2. The submissions made by the Applicant in its Application are summarized hereunder:

(i) The Applicant, whilst collating the claims from Financial Creditors of the Corporate Debtor, vide Form-C read with Sanction letter dated 24.09.2014 submitted by the Punjab National Bank (Erstwhile Oriental bank of commerce) ('Secured Financial Creditor'), discovered that the Corporate Debtor has availed a loan and created 1st pari passu charge by way of equitable mortgage, in favour of Secured Creditor over its five immovable properties. Copy of Sanction letter dated 24.09.2014 along with Charge creation and Form C submitted by the Secured Financial Creditor are annexed as Annexure A-3 to the Application.

(Admitted Matter)

(ii) Out of such five immovable properties of the Corporate Debtor, one Factory land and building, located at Village Raiyan, Chandigarh Road, District Ludhiana, is in possession of the Respondents. Detail of relevant property

Click Here to Read the rest of this document