TaxTMI 
TaxTMI 
TaxTMI 
2021 (4) TMI 17
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.... Advocates JUDGMENT BANSI LAL BHAT , J. Respondent herein filed application being IA/626/2020 under Section 60(5) of Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code') seeking direction in the name of Resolution Professional of the Corporate Debtor - 'M/s Arudaavis Labs Pvt. Ltd.' to handover vacant possession of the leased out premises to the Respondent besides claiming lease rental. By virtue of impugned order dated 4th November, 2020, the Adjudicating Authority (National Company Law Tribunal) Special Bench, Chennai allowed the application directing the Resolution Professional to vacate and handover the possession of land and building measuring 95 Cents and 10,504/- sq.ft. respectively comprised in survey no....
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....ial loss due to lack of godown space for storing his paddy stock harvested during May, 2020 leaving him with no option but to sell the stock at a throw away price and thus staked his claim to obtain vacant possession of leased premises for storing his future paddy stock. The Appellant contested the application on various grounds though the factum of admission of claim of Respondent to the tune of Rs. 66,79,260/- on account of rental arrears was admitted. It was pleaded that the Lease Deed initially executed in year 2011 was renewed on 23rd November, 2013 for 11 months with effective lease period starting from 1st June, 2013 and after completion of 11 months the lease was not renewed further. It was further pleaded that moratorium had come t....
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....ble Apex Court in "Rajendra K. Bhutta vs. Maharashtra Housing and Area Development Authority" being Civil Appeal No. 12248 of 2018. It is contended that as the Corporate Debtor is in actual physical occupation of the property the same cannot be recovered by the Owner or Lessor. It is further submitted that the application filed by the Respondent was premature as moratorium continued to be in effect and neither any Resolution Plan had been approved for the Corporate Debtor nor had the Corporate Debtor been sent into liquidation. 4. Per contra it is contended by learned counsel for Respondent that the CIRP period of Corporate Debtor expired on 26th January, 2020 and no application was filed by the Resolution Professional for extension of CIR....
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....porate Debtor is not permissible during the period of moratorium." In the afore titled appeal this Appellate Tribunal was dealing with the issue whether the order of moratorium will be applicable to the lease hold property of a Landlord in which the Corporate Debtor is a tenant, particularly after decree of eviction passed in favour of the land lord against the Corporate Debtor. The finding recorded is unambiguous and lucid. The recovery of property by the Owner/ Landlord occupied by the Corporate Debtor is not permissible during the period of moratorium. 7. In "Rajendra K. Bhutta vs. Maharashtra Housing and Area Development Authority", Civil Appeal No.12248 of 2018, the Hon'ble Apex Court was dealing with the issue whether Section 14(1)....
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.... any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under subsection (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be." 10. A bare reading of this provision reveals that the order of moratorium takes effect from the insolvency commencement date which, as defined under Section 5(12), means the date of admission of an application for initiating CIRP by the Adjudicating Authority under Section 7, 9 or 10 of the I&B Code. It lasts till completion of CIRP. Under Section 12 of I&B Code the time limit for completion o....