Lease Termination Upheld: Authority's Cancellation of Plot Lease Excluded from Insolvency Resolution Plan, Tribunal Confirms.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The Noida authority had terminated the lease deed of the subject land prior to the commencement of the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. Despite this, the suspended management wrongfully included the subject plot in the resolution plan, claiming the lease was still subsisting. The Adjudicating Authority correctly held that since the lease was cancelled before CIRP initiation, the Corporate Debtor had lost possession rights, and the moratorium u/s 14 of the Insolvency and Bankruptcy Code (IBC) would not apply. The Resolution Professional (RP) should not have treated the cancelled plot as an asset and included it in the resolution plan without proper verification. The RP's actions, including preparing the.........