Appellate Tribunal Upholds Landlord's Application Rejection During Moratorium Period

The Appellate Tribunal upheld the rejection of the landlord's application to direct the Corporate Debtor to vacate the premises during the moratorium period. It emphasized that property recovery by the landlord is prohibited during this period under Section 14(1)(d) of the Insolvency and Bankruptcy Code, 2016. The Tribunal advised the appellant to address the issue of the Corporate Debtor paying current rent directly with the Resolution Professional or the Adjudicating Authority. The Tribunal did not provide a definitive opinion on the recovery of arrears of rent post-moratorium, leaving it to the court of competent jurisdiction to decide. The appeal was disposed of with no costs awarded.

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Issues:
Challenge to rejection of application for direction to vacate premises during moratorium period.

Analysis:
The Appellate Tribunal considered the challenge against the order rejecting the application by the landlord to direct the Corporate Debtor to vacate the premises during the moratorium period. The Tribunal referred to Section 14(1)(d) of the Insolvency and Bankruptcy Code, 2016, which prohibits the recovery of property by the owner occupied by the Corporate Debtor during the moratorium. The Tribunal highlighted that the recovery of property by the landlord is not permissible during this period.

The Tribunal also addressed the issue of the Corporate Debtor paying current rent for the period of moratorium as they are occupying the premises. The counsel for the appellant raised this point, suggesting that the Resolution Professional should ensure payment of rent. However, the Tribunal noted that this issue was not raised before the Adjudicating Authority and advised the appellant to bring it to the attention of the Resolution Professional or the Adjudicating Authority for consideration.

Furthermore, the Tribunal discussed the timeline of the moratorium period coming to an end on a specific date. The appellant claimed the right to pursue recovery of arrears of rent once the moratorium period concludes. However, the Tribunal refrained from expressing any opinion on this matter, stating that it should be decided by the court of competent jurisdiction. Ultimately, the appeal was disposed of with the observations made during the proceedings, and no costs were awarded in the matter.

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