Appeal dismissed for eviction from property during insolvency proceedings under Section 60(5) IBC jurisdiction

NCLAT dismissed appeal regarding eviction from property during corporate insolvency proceedings. The tribunal held that under Section 60(5) of the Insolvency and Bankruptcy Code, NCLT has jurisdiction over disputes relating to corporate debtor's assets during CIRP. The appellant failed to complete contractual obligations by the agreed deadline of 30.11.2018 and could not claim double earnest money under the agreement. The property title dispute was deemed directly related to insolvency resolution, falling within NCLT's jurisdiction per Gujarat Urja precedent. The tribunal ordered appellant's eviction and possession transfer to the liquidator within 15 days.

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Issues Involved:
1. Eviction of the Appellant from the property in question.
2. Ownership rights under the agreement to sell.
3. Jurisdiction of the Adjudicating Authority.
4. Entitlement to refund or specific performance under the agreement to sell.

Summary:

Eviction of the Appellant from the property in question:
The appeal challenges the order dated 02.06.2023 by the Adjudicating Authority (NCLT, Chandigarh Bench) directing the Appellant to hand over possession of the property to the Resolution Professional (RP), now Liquidator, within 15 days, with police assistance if necessary.

Ownership rights under the agreement to sell:
The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor commenced on 06.12.2019. The RP filed I.A. No. 937 of 2020 alleging that the property in question belongs to the Corporate Debtor based on a sale deed dated 03.09.2014. The Appellant claimed possession based on an agreement to sell dated 31.03.2018, paying Rs. 30,40,000/- in part performance. However, the sale deed was never executed, and the RP did not accept the Appellant's claim during CIRP, though the Liquidator later admitted a part claim of Rs. 18 lakh as 'other stakeholder'.

Jurisdiction of the Adjudicating Authority:
The Appellant argued that the Adjudicating Authority lacked jurisdiction, citing several Supreme Court decisions. However, the Tribunal held that under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (Code), the Adjudicating Authority has jurisdiction to adjudicate disputes relating to the insolvency resolution or liquidation proceedings of the corporate debtor. The Tribunal referenced the Supreme Court's observation in Gujarat Urja Vikas Nigam Limited Vs. Amit Gupta, emphasizing that NCLT has exclusive jurisdiction over matters relating to insolvency.

Entitlement to refund or specific performance under the agreement to sell:
The Appellant argued for either a refund of double the earnest money or specific performance of the contract. The Tribunal noted that the agreement to sell had specific clauses for refund or specific performance if the Corporate Debtor defaulted. However, the Appellant failed to perform his part by not making full payment by the agreed final date of 30.11.2018, thus invalidating his claim for protection under Section 53A of the Transfer of Property Act, 1882.

Conclusion:
The Tribunal dismissed the appeal, affirming the Adjudicating Authority's jurisdiction and rejecting the Appellant's claims for refund or specific performance due to non-fulfillment of contractual obligations. The Appellant's possession was deemed illegal post the final payment date, and the eviction order was upheld.

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