Tribunal Orders Insolvency Professional to Vacate Leased Premises, Pay Outstanding Dues

The Tribunal directed the respondent, an insolvency resolution professional, to vacate and hand over the leased premises to the applicant within 30 days. The respondent was instructed to pay any outstanding rental dues to the applicant. This decision aimed to provide relief to the applicant and resolve the dispute regarding rental payments during the Corporate Insolvency Resolution Process period.

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Issues:
1. Relief sought by the applicant under section 60(5) of the Insolvency and Bankruptcy Code, 2016 for vacant possession and rental payments.
2. Claim of rental arrears by the applicant against the corporate debtor.
3. Dispute over the renewal of the lease deed and liability to pay rent.
4. Possession of premises by the respondent during the Corporate Insolvency Resolution Process (CIRP).
5. Admittance of claim by the respondent but refusal to pay rent for the CIRP period.
6. Security measures and costs borne during the CIRP period.

Analysis:
1. The applicant filed an application seeking relief under section 60(5) of the Insolvency and Bankruptcy Code, 2016, requesting immediate possession of leased premises and rental payments. The respondent, an insolvency resolution professional (IRP), admitted the applicant's claim for rental arrears but contested paying rent for the CIRP period, citing non-renewal of the lease deed.

2. The applicant, an agriculturist and owner of the leased premises, faced financial losses due to the Covid-19 pandemic and lockdown. The respondent, as the IRP, was in possession of the premises since the CIRP commencement. The applicant sought direction for the respondent to pay rent for the CIRP period, which the respondent refused based on lease deed non-renewal.

3. The respondent argued that the lease deed was not renewed after an initial period, thus absolving them from paying rent. However, the respondent's admission of the claim contradicted this argument. The Tribunal held that the respondent cannot deny rent payment based on non-renewal after admitting the claim, preventing inconsistent stances.

4. Despite the corporate debtor's non-payment of rent since 2014, the respondent admitted and communicated the rental arrears to the applicant. The Tribunal found the respondent's security measures and costs during the CIRP period contradictory to their refusal to pay rent, emphasizing the obligation to pay rent during possession.

5. Considering the circumstances, the Tribunal directed the respondent to vacate and hand over the premises to the applicant within 30 days. The applicant was given the option to file a claim for any outstanding rental dues within the same period. The application was disposed of with these directions, ensuring relief for the applicant and addressing the dispute over rental payments during the CIRP period.

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