NCLAT Upholds Order in Mercedes Dispute, Vehicle to Resolution Professional

The National Company Law Appellate Tribunal, Principal Bench, New Delhi, affirmed the Adjudicating Authority's order in a case involving a dispute over possession of a Mercedes Benz GL 350 CDI EXE between an Appellant and HDFC Bank. The Appellant's claim of ownership based on an Agreement was dismissed, and the Tribunal upheld the decision to hand over the vehicle to the Resolution Professional due to pending insolvency proceedings against the Corporate Debtor. The judgment considered the loan owed to HDFC Bank and supported the Resolution Professional's efforts to take possession, ultimately dismissing the appeal.

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Issues Involved:
1. Dispute over possession of a vehicle between the Appellant and Respondent No. 1.
2. Legal rights and obligations regarding the ownership of the vehicle.
3. Application of the Insolvency and Bankruptcy Code, 2016 in the case.

Issue 1: Dispute over Possession of a Vehicle
The case involved a dispute over the possession of a Mercedes Benz GL 350 CDI EXE between the Appellant and Respondent No. 1, HDFC Bank. The Adjudicating Authority directed the Appellant to hand over the vehicle to the Resolution Professional due to pending insolvency proceedings against the Corporate Debtor, who had not paid the loan installments to HDFC Bank.

Issue 2: Legal Rights and Obligations
The Appellant claimed ownership of the vehicle based on an Agreement dated 28.07.2015 and argued that the Adjudicating Authority's order was illegal and against natural justice. The Appellant cited a judgment by the Punjab and Haryana High Court regarding the transfer of ownership in the registration certificate of a vehicle under the Sale of Goods Act, emphasizing that the impugned order should be set aside.

Issue 3: Application of Insolvency and Bankruptcy Code
The Resolution Professional, Respondent No. 2, asserted that the vehicle was registered in the name of the Corporate Debtor and that HDFC Bank had a hypothecation charge over the vehicle. The Resolution Professional had made efforts to take possession of the vehicle and sought the Appellant to comply with the Adjudicating Authority's order. HDFC Bank supported the Resolution Professional's claim, stating that the loan amount had not been fully paid by the Corporate Debtor.

Findings:
The Tribunal affirmed the Adjudicating Authority's order, considering the loan amount owed to HDFC Bank and the Resolution Professional's admission of the bank's claim. The judgment upheld the decision to hand over the vehicle to the Resolution Professional, dismissing the Appeal and directing the Registry to upload the judgment on the Tribunal's website.

This detailed analysis covers the issues of the dispute, legal rights and obligations, and the application of the Insolvency and Bankruptcy Code in the judgment delivered by the National Company Law Appellate Tribunal, Principal Bench, New Delhi.

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