2026 Supreme(Online)(NCLT) 2377

NATIONAL COMPANY LAW TRIBUNAL
Kunj Bihari Steel Private Limited – Appellant
Versus
Mr. Sanjeev Kumar Jalan Resolution Professional Ankit Metal & Power Limited – Respondent
IA(I.B.C) - 1349/2025

The NCLT has jurisdiction under Section 60(5) of the IBC to direct eviction of a lessee from a corporate debtor's premises, as such matters are intrinsically linked to the CIRP and bar civil court jurisdiction.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 60(5) and 63 - National Company Law Tribunal Rules, 2016 - Rule 11 - Companies Act, 2013 - Section 430 - Constitution and scope of NCLT's jurisdiction - Jurisdiction under Section 60(5)(c) extends to any question of law or facts arising out of or in relation to the insolvency resolution proceedings of the corporate debtor - Section 63 and Section 430 of the Companies Act bar civil courts from entertaining any matter which NCLT has jurisdiction over - The RP is duty bound to take control and custody of all assets of the corporate debtor under Sections 18 and 25 of the IBC. (Paras 22-25)

(B) Jurisdiction - Eviction of lessee - Nexus with CIRP - The NCLT has jurisdiction to direct the eviction of a lessee from the corporate debtor's premises if the lease dispute affects the possession, control, valuation, resolution plan, or asset monetisation of the corporate debtor during CIRP - The recovery of property and rent from a lessee is intrinsically linked to the CIRP because it preserves asset value and facilitates the resolution process - The RP is under a statutory mandate to take control and custody of all assets owned by the Corporate Debtor, and requiring initiation of a separate civil suit for eviction would unduly prolong the insolvency process which is intended to be time-bound. (Paras 21, 25)

Facts of the case:
The Corporate Debtor was admitted for CIRP on 3rd May 2024. Before the appointment of the RP, a Lease Agreement was entered into on 20th April 2024 with the Applicant (Lessee) for lease of a plant. After CIRP, the CoC amended the lease terms including a clause (Clause 8.4) providing for termination by 30 days' notice upon approval of a resolution plan. The lessee accepted these amendments. The lessee defaulted in payment of lease rentals. The RP sent a notice to the lessee under Clause 8.1 of the lease agreement for non-payment and subsequently terminated the lease on 8th February 2025. The RP filed an application under Section 60(5) seeking direction for payment of arrears and eviction. The lessee filed a separate application seeking dismissal of the RP's application for want of jurisdiction, arguing that the NCLT has no jurisdiction to entertain recovery of possession of immovable property which constitutes a suit for land.

Findings of Court:
The Tribunal held that a direct nexus of the RP's application with the CIRP of the Corporate Debtor is established since the lease is a part of the Corporate Debtor's business continuity, and obstruction to such possession affects the value and viability of the Resolution process. The NCLT has jurisdiction to entertain the application under Section 60(5) of the IBC, and civil courts are barred from entertaining such matters by Section 63 of the IBC and Section 430 of the Companies Act. The termination was under Clause 8.1 for default in payment, not under Clause 8.4. The Tribunal directed the lessee to clear the lease rental dues and hand over the premises to the RP within 2 weeks.

Issues: The main issues were whether the NCLT has jurisdiction under Section 60(5) of the IBC to entertain an application for eviction of a lessee from the corporate debtor's premises, and whether such an application amounts to a suit for land which can only be instituted in the District Court.

Ratio Decidendi: The court ruled that the NCLT has jurisdiction under Section 60(5) of the IBC to direct eviction of a lessee from the corporate debtor's premises, as the lease is intrinsically linked to the CIRP because it preserves asset value and facilitates the resolution process. The requirement of a separate civil suit would unduly prolong the insolvency process.

Result: I.A. (IBC) NO. 1349/KB/2025 filed by the lessee seeking dismissal of the RP's application is dismissed, and I.A. (IBC) No. 721/KB/2025 filed by the RP is allowed with directions for the lessee to clear lease rental dues and hand over possession within 2 weeks, and police assistance for taking possession. (Dissenting Opinions or Alternative Viewpoints: None) (Parties Involved: Not included per instructions - named entities excluded.) (References: Sections 60(5), 63, 238 IBC; Sections 18, 20, 25 IBC; Section 430 Companies Act; Rule 11 NCLT Rules; Classic Marble Company Pvt. Ltd vs. Truvisory Insolvency Professionals (NCLAT, 27th March 2026))

Table of Content
1. introduction of applications and brief factual background of cirp (Para 1 , 2 , 3)

I.A. (IBC) NO. 721/KB/2025 in C.P. (IB) NO. 91/KB OF 2023 An Application under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, Read with Rule 11 of the National Company Law Tribunal Rules, 2016 and with Regulation 36 of the Insolvency And Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 IN THE MATTER OF:

Asset Care & Reconstruction Enterprises Limited ...Financial Creditor Versus Ankit Metal & Power Limited ...Corporate Debtor AND IN THE MATTER OF:

Kunj Bihari Steel Private Limited ...Applicant Verus Mr. Sanjeev Kumar Jalan ...Respondent Date of Pronouncement: 23.04.2026 I.A. (IBC) NO. 721/KB/2025 in C.P. (IB) NO. 91/KB OF 2023 Coram:

Smt. Bidisha Banerjee, Member (Judicial)

Cmde. Siddharth Mishra, Member (Technical)

Appearances (through hybrid mode):

For the Applicant(s)-

Mr. Mainak Bose, Sr. Adv.

Mr. Ishaan Saha, Adv.

Mr. Avishek Guha, Adv.

Ms. Ankita Agrahari, Adv.

Ms. Sweta majumdar, Adv.

Ms. A. Nayek, Adv.

For the Respondent(s)-

Mr. Ritoban Sarkar, Adv.

Mr. Ankur Singhi, Adv.

Ms. Riti Basu, Adv. Ms. Piyali Pan, Adv.

I.A. (IBC) NO. 721/KB/2025 in C.P. (IB) NO. 91/KB OF 2023

O R D E R

Per: Bidisha Banerjee, Member (Judicial)

1. I.A. (IBC.) No. 721/KB/2025

1.1 The application numbered I.A. (IBC.) No. 721/KB/2025 (hereinafter referred to as the 'said application') has been preferred by the Resolution Professional (RP) of the Corporate Debtor Ankit Metal & Power Limited against Kunj Bihari Steel Private Limited, the applicant herein. The prayers in I.A. (IBC.) No. 721/KB/2025 are as under:

a. Order directing Respondent to make payment of the Lease Rentals since July, 2024 amounting to Rs. 1,66,80,061 (Rupees One Crore Sixty-Six Lakhs Eighty Thousand and Sixty-One) along with interest of

12% p.a.

b. Order directing the Respondent to vacate and handover the peaceful possession of the Said Premises and its machineries, equipment, tools and tackles to the Applicant herein in the same condition as it was handed over to in (subject to normal wear and tear), and return all keys, access cards, and property belonging to the Applicant within 03 days from passing of this order.

c. Pass necessary directions upon the Officer in Charge of the Chhatna Police Station, Saltora, Bankura, Pin-722132 to provide necessary assistance to the Applicant for taking physical possession and control of the Said Premises.

d. Ad-interim in terms of prayer above.

e. Such further or other order or orders and/or direction or directions as this Hon'ble Tribunal may deem fit and proper.

2. I.A. (IBC) NO. 1349/KB/2025

2.1 The present application numbered I.A. (IBC) NO. 1349/KB/2025 has been filed by the Applicant herein under Section 60(5) of the IB Code, I.A. (IBC) NO. 721/KB/2025 in C.P. (IB) NO. 91/KB OF 2023

2016 read with Rule 11 of the NCLT Rules, 2016, inter alia, seeking an order of dismissal of I.A. (IBC.) NO. 721/KB/2025 for want of jurisdiction, alleging that this Adjudicating Authority is not empowered to grant prayers as sought for in the I.A. (IBC.) No. 721/KB/2025

3. BRIEF BACKGROUND

3.1 The Corporate Debtor, i.e., Ankit Metal & Power Limited, was admitted for Corporate Insolvency Resolution Process by an order passed by this Tribunal on 3rd May 2024. By the said order Mr. Kshitiz Chhawchharia was appointed as the Interim Resolution Professional.

3.2 Mr. Kshitiz Chhawchharia constituted the Committee of Creditors (CoC)

on 24th May 2024 and the CoC in its 5th meeting dated 27th August 2024 decided to appoint Mr. Sanjeev Kumar Jalan, as the Resolution Professional.

3.3 Further by an order dated 12th September 2024, this Tribunal appointed the present RP, being the Respondent herein, as the Resolution Professional in the present Corporate Insolvency Resolution Process (CIRP) of Ankit Metal & Power Limited.

3.4 On and from 1st October 2024, the present Resolution Professional started functioning as the Resolution Professional (‘RP’

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