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Insolvency and BankruptcyMarch 30, 2024Case LawsAT
Ownership of leasehold rights over the subject plot - demand for enhanced land cost was raised much before initiation of CIRP - The tribunal held that the demand for enhanced compensation by the respondent was valid and pre-dated the initiation of CIRP. It was emphasized that the respondent's rights could not be overridden by the provisions of the IBC, 2016, without compliance with the original terms of the lease deed. - The tribunal clarified that the clean slate principle does not extend to demands made by public authorities before the initiation of CIRP, especially when such demands pertain to clearing defects in the title of the land itself. - The judgement highlights the balance between the objectives of the IBC, 2016, and the rights of public sector authorities over leased assets.
Ownership of leasehold rights over the subject plot - demand for enhanced land cost was raised much before initiation of CIRP - The tribunal held that the demand for enhanced compensation by the respondent was valid and pre-dated the initiation of CIRP. It was emphasized that the respondent's rights could not be overridden by the provisions of the IBC, 2016, without compliance with the original terms of the lease deed. - The tribunal clarified that the clean slate principle does not extend to demands made by public authorities before the initiation of CIRP, especially when such demands pertain to clearing defects in the title of the land itself. - The judgement highlights the balance between the objectives of the IBC, 2016, and the rights of public sector authorities over leased assets.
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