Rent Claim Allowed as Operational Creditor; Adjudication Modified to Protect Assets

The National Company Law Tribunal Mumbai Bench allowed the first Appellant to file a claim for unpaid rent as an 'Operational Creditor'. The Resolution Professional was directed to collate and classify the claim under the Liquidation Mechanism. The Adjudicating Authority upheld the termination notice, directed calculation of outstanding rent, and restrained the Respondents from adjusting amounts from the Security Deposit. The Tribunal modified the decision, requiring the Respondents to file claims up to the termination date and emphasized the RP's duty to preserve assets. The Appeal was partly allowed, with the modified Order to be communicated to the NCLT Mumbai Bench.

---

---

Issues Involved:
1. Filing of a claim for unpaid rent by the first Appellant as an 'Operational Creditor'.
2. Directions sought by the Resolution Professional (RP) regarding cooperation, possession, and relocation of assets.
3. Validity and effectiveness of the Termination Notice dated 13.02.2020.
4. Waiver of Lease Rent and Maintenance Charges for the lockdown period.
5. Calculation of outstanding Lease Rent and Maintenance Charges.
6. Restraining the Respondents from adjusting amounts from the Security Deposit.

Issue-wise Detailed Analysis:

1. Filing of a Claim for Unpaid Rent by the First Appellant as an 'Operational Creditor':
The National Company Law Tribunal (NCLT) Mumbai Bench allowed the first Appellant to file a claim for unpaid rent from 25.03.2020 to 28.07.2020 as an 'Operational Creditor'. The Resolution Professional (RP) was directed to collate and classify the claim under the Liquidation Mechanism as per Section 33 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority emphasized that the amount due to the Respondents is an Operational Debt and suggested that the Respondents file their claim before the RP for verification and determination as per Regulations 13 and 14 of the Insolvency Resolution Process for Corporate Persons Regulations, 2016. The RP was instructed to pay the Respondents as per the waterfall mechanism under Section 53 of the Code.

2. Directions Sought by the RP Regarding Cooperation, Possession, and Relocation of Assets:
The RP sought directions for the Respondents to cooperate and not restrain access, possession, and relocation of the company's assets and records. The Adjudicating Authority directed the Respondents to allow the RP to vacate the premises within 30 days and permitted the RP to seek local police assistance if needed. The RP was recognized as an officer of the Tribunal responsible for running the company during the Corporate Insolvency Resolution Process (CIRP).

3. Validity and Effectiveness of the Termination Notice Dated 13.02.2020:
The Termination Notice dated 13.02.2020 was declared valid and effective from 15.09.2020. The Adjudicating Authority noted that the Lease Deed and Maintenance Agreement were terminated with effect from 15.09.2020, including the lockdown period from 25.03.2020 to 28.07.2020, as the premises were in possession of the RP/Corporate Debtor during that period. The Respondents were directed to file their claim for unpaid rent from 25.03.2020 to 28.07.2020, and any delay in filing the claim was condoned.

4. Waiver of Lease Rent and Maintenance Charges for the Lockdown Period:
The RP sought a full waiver of Lease Rent and Maintenance Charges for the lockdown period. However, the Adjudicating Authority did not exclude the lockdown period from the termination date, stating that the Respondents were entitled to be paid as the premises were in possession of the Corporate Debtor during that time. The Respondents were directed to file their claim for the unpaid rent for the lockdown period.

5. Calculation of Outstanding Lease Rent and Maintenance Charges:
The Adjudicating Authority directed that the outstanding Lease Rent and Maintenance Charges be calculated treating 15.09.2020 as the date of termination of the Lease Deed and Maintenance Agreement. The Respondents were advised to file their claim before the RP, and the RP was instructed to verify and determine the claim amount as per the regulations.

6. Restraining the Respondents from Adjusting Amounts from the Security Deposit:
The Adjudicating Authority directed the Respondents not to adjust any amounts from the Security Deposit or Maintenance Advance towards admitted claims. The Respondents were instructed to refund the Security Deposit within 30 days from the date of the Order. The Appellants contended that the Security Deposit should be refunded only after the premises were vacated, as per the Lease Agreement terms.

Assessment and Conclusion:
The Tribunal upheld the Adjudicating Authority's decision, with a modification that the Respondents should file their claims for unpaid rent up to 15.09.2020, instead of only for the lockdown period. The Tribunal confirmed the rest of the Order, emphasizing the RP's duty to preserve and protect the assets of the Corporate Debtor and the adherence to the provisions of the IBC and related regulations. The Appeal was partly allowed, and the modified Order was directed to be uploaded on the Tribunal's website and communicated to the NCLT Mumbai Bench.

---