NCLT dismisses Municipal Corporation's plea for fresh land valuation, affirms agricultural classification

The National Company Law Tribunal, Principal Bench, New Delhi dismissed the Municipal Corporation Faridabad's application seeking directions against the Liquidator for fresh valuation of industrial land, emphasizing the binding nature of previous judgments affirming the land's agricultural classification. The Tribunal noted the Municipal Corporation's delayed demands and lack of merit in revisiting settled issues, ultimately denying the application and scheduling pending matters for future hearings.

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Issues:
1. Municipal Corporation seeking directions against the Liquidator for fresh valuation of land.
2. Historical facts and demands made by the Municipal Corporation.
3. Previous judgments by NCLAT and Supreme Court regarding the nature of the land.
4. Liquidator's submission on Reserve Price and Circle Rate.
5. Final decision on the application seeking conversion and revaluation of assets.

Analysis:
1. The Municipal Corporation Faridabad (MCF) filed an application seeking directions against the Liquidator to accept its claim and conduct fresh valuation of the industrial land of the corporate debtor (CD) as per Regulation 35(2) of IBBI Liquidation Regulations 2016. The MCF demanded payment of External Development Charges (EDC) outstanding since 2002, amounting to Rs. 23,96,30,131 along with interest accrued. The Bench noted that MCF did not raise this demand during the Corporate Insolvency Resolution Process (CIRP) or liquidation until 2021, questioning their awareness of the proceedings.

2. The MCF claimed that due to lockdown, they could not raise the demand earlier, and reported a missing CLU case file in January 2021. However, the Bench highlighted that the MCF's demands were made post the Supreme Court's decision upholding NCLAT's order regarding the land's nature. The MCF's memo demanded EDC and property taxes, raising doubts on the timing and intention behind the demands.

3. Previous judgments by NCLAT and the Supreme Court affirmed the land's agricultural nature, rejecting appeals for fresh valuation. The Bench emphasized that once finality is achieved on an issue by higher courts, it binds all parties, preventing reexamination. The MCF's attempts to challenge the nature of the land were consistently dismissed by the judiciary, establishing the land's classification as agricultural.

4. The Liquidator highlighted the promoter's unsuccessful attempts to challenge the Reserve Price set for the land auction, citing discrepancies between the Reserve Price and Circle Rate. Despite these claims, both NCLAT and the Supreme Court upheld the agricultural classification of the land, emphasizing the 'as is where is' basis of the sale.

5. Ultimately, the Bench dismissed the MCF's application for conversion and revaluation of assets, deeming it misconceived after considering the conclusive judgments by higher courts. The decision emphasized the binding nature of final judgments and the lack of merit in revisiting settled issues. The Bench scheduled pending applications for a hearing on a future date.

This detailed analysis encapsulates the key issues, historical context, judicial decisions, and the final outcome of the judgment delivered by the National Company Law Tribunal, Principal Bench, New Delhi.

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