Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(NCLT) 2475

NATIONAL COMPANY LAW TRIBUNAL
Mr. Sanjeev Kumar Jalan – Appellant
Versus
Sova Electrocasting Limited – Respondent
IA(I.B.C) - 717/2025

Advocates:
For the Petitioner:Ankur Singhi
For the Respondent:Guha&Co

NCLT has jurisdiction under Section 60(5) of IBC to order eviction of a lessee from a corporate debtor's premises during CIRP to preserve asset value and facilitate the resolution process.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 60(5), Section 63, Section 238 - Companies Act, 2013 - Section 430 - National Company Law Tribunal Rules, 2016 - Rule 11 - Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - Regulation 36 - Transfer of Property Act, 1882 - Section 106 (Paras 22-24)

(B) Jurisdiction of NCLT - The NCLT has jurisdiction under Section 60(5) of the IBC to entertain an application for recovery of possession of the corporate debtor's premises from a lessee in default, as the dispute arises during the CIRP, concerns asset management and business continuity, and directly affects the value and viability of the resolution process. 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. (Paras 21-22)

(C) Statutory Bar on Civil Courts - Civil Courts are barred from entertaining any suit in respect of any matter that the NCLT has jurisdiction over by virtue of Section 430 of the Companies Act, 2013 and Section 63 of the IBC. (Paras 23-24)

(D) Precedent - The precedent set in Classic Marble Company Pvt. Ltd vs. Truvisory Insolvency Professionals establishes that the NCLAT confirmed the NCLT's power to direct eviction, emphasizing that requiring a separate civil suit would unduly prolong the insolvency process. (Para 25) (E) Duty of Resolution Professional - The Resolution Professional is under a statutory mandate via Sections 18 and 25 of the IBC to take control and custody of all assets owned by the Corporate Debtor. (Paras 21-22, 25)

Facts of the case:
The Corporate Debtor was admitted for CIRP on 3rd May 2024. On 20th April 2024, prior to the RP's appointment, the Corporate Debtor entered into a lease agreement with the applicant, granting lease of a plant for manufacturing. The CoC revised the lease terms, which the applicant accepted by letter dated 2nd December 2024. The applicant defaulted in paying lease rentals. The RP terminated the lease under the default clause after notice and filed an application for recovery of possession and arrears. The applicant filed a separate application seeking dismissal of the RP's application for want of jurisdiction, arguing that NCLT lacked power to order eviction.

Findings of Court:
The court found a direct nexus between the RP's application and the CIRP. It held that 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 jurisdiction of NCLT under Section 60(5) was upheld, and civil courts were found barred under Sections 63 of IBC and 430 of Companies Act. The court relied on the precedent in Classic Marble Company case.

Issues: The main issue was whether the NCLT has jurisdiction under Section 60(5) of the IBC to direct the eviction of a lessee from the corporate debtor's premises during the CIRP.

Ratio Decidendi: The NCLT has jurisdiction to entertain and dispose of applications concerning property in possession of a lessee of the corporate debtor during CIRP, as such applications directly relate to the insolvency resolution process. The exercise of this jurisdiction is necessary for the Resolution Professional to take control and custody of assets, preserve asset value, and facilitate the timely completion of the resolution process. Result : I.A. (IBC) NO. 1027 /KB/2025 is dismissed. In I.A. (IBC) No. 717/KB/2025, the lessee is directed to clear the dues and hand over possession to the RP within 2 weeks; police assistance is ordered for taking physical possession. I.A. (IBC) No. 717/KB/2025 stands allowed and disposed off. (Paras 26(i)-26(iii))

I.A. (IBC) NO. 717/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:

Sova Electrocasting Limited ...Applicant Verus Mr. Sanjeev Kumar Jalan ...Respondent Date of Pronouncement: 23.04.2026 I.A. (IBC) NO. 717/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. 717/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. 717/KB/2025

1.1 The application numbered I.A. (IBC.) No. 717/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 Sova Electrocasting Limited, the applicant herein. The prayers in I.A. (IBC.) No. 717/KB/2025 are as under:

a. Order directing Respondent No. 1 to make payment of the Lease Rentals since July, 2024 amounting to Rs. 1,09,54,900 (Rupees One Crore Nine Lakhs Fifty Four Thousand and Nine Hundred) along with interest of 12% p.a.

b. Order directing the Respondent No. 1 to vacate and handover the peaceful possession of the Said Premises and its machineries, equipment, tools and tackles to the Applicant herein the same conditions 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. 1027/KB/2025

2.1 The present application numbered I.A. (IBC) NO. 1027/KB/2025 has been filed by the Applicant herein under Section 60(5) of the IB Code, 2016 read with Rule 11 of the NCLT Rules, 2016, inter alia, seeking an I.A. (IBC) NO. 717/KB/2025 in C.P. (IB) NO. 91/KB OF 2023 order of dismissal of I.A. (IBC.) NO. 717/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. 717/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’).

3.5 It is an admitted fact that on 20th April 2024, prior to the appointment of the present RP,

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2026 Supreme(Online)(NCLT) 2475

NATIONAL COMPANY LAW TRIBUNALMr. Sanjeev Kumar Jalan – AppellantVersusSova Electrocasting Limited – RespondentIA(I.B.C) - 717/2025

NCLT has jurisdiction under Section 60(5) of IBC to order eviction of a lessee from a corporate debtor's premises during CIRP to preserve asset value and facilitate the resolution process.

NATIONAL COMPANY LAW TRIBUNAL
Mr. Sanjeev Kumar Jalan – Appellant
Versus
Sova Electrocasting Limited – Respondent
IA(I.B.C) - 717/2025