2018 (1) TMI 1333 - Tri - Insolvency and Bankruptcy

Corporate insolvency process - RP seeking direction to respondents no. 2 to 5 to pay the rent and for direction to the police to give the protection to take charge of the assets and for direction to Respondent no. 6 and 7 styling them as unauthorised occupants under section 14 r/w section 20 of IB Code - relief against the tenants - Held that - This application is filed without the approval of the COC. Section 14 of the IB Code only imposes moratorium from the recovery of any property by an owner or lessor, where such property is occupied by or in the possession of corporate debtor. Therefore, RP cannot invoke section 14 (l) (d) of the IB Code, In case RP finds any difficulty in discharging its function as laid down in section 25 of the IB Code, he can approach the District Administration under regulation 30 of Insolvency and Bankruptcy (Insolvency Resolution) Regulations, 2016. Hence, the application is dismissed in respect of relief against the tenants.

Summary

The Tribunal dismissed the application filed by the RP seeking direction for rent payment and asset protection from respondents no. 2 to 5 as it was filed without COC approval. RP cannot invoke section 14 of the IB Code for relief against tenants, but can recover rent and seek assistance from District Administration if needed. Application dismissed in respect of relief against tenants.