Temporary use of liquidated hospital premises for Covid treatment can be authorised with safeguards protecting the liquidation process.

Temporary use of hospital premises under liquidation may be permitted for Covid treatment where public health exigencies arise, provided the arrangement protects the asset and does not prejudice the liquidation process. The tribunal's approach balanced pandemic-response needs with the liquidator's control by requiring conditions on possession, use, return of the property, and a prohibition on permanent alterations. It also reflected the principle that disaster-management measures can prevail over inconsistent restraints, with compensation issues, if any, to be addressed within the disaster-management framework.

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Issues: Whether the liquidated hospital premises could be permitted to be used by the District Collector as a Covid treatment facility during the subsistence of liquidation, subject to protective conditions balancing public health needs and liquidation interests.

Analysis: The request was examined in the context of the prevailing pandemic situation and the statutory framework governing disaster response. The Tribunal noted that public health exigencies justified temporary use of the premises, while also safeguarding the liquidation process by imposing conditions on possession, use, return of the property, prohibition against permanent alterations, and protection of the liquidator's interests. The arrangement was also aligned with the principles that disaster management measures may override inconsistent legal restraints and that compensation issues, where relevant, are to be addressed under the disaster management framework.

Conclusion: The application was allowed and the hospital premises were permitted to be used as a Covid treatment facility, subject to the specified conditions.

Final Conclusion: Temporary use of the corporate debtor's hospital was authorised in aid of pandemic response, while preserving the liquidator's control over the asset and the integrity of the liquidation process.

Ratio Decidendi: Where public health exigencies arise, premises under liquidation may be temporarily requisitioned or permitted for disaster-response use, provided the order preserves the asset, protects liquidation interests, and operates within the overriding framework of disaster management law.

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