2018 (8) TMI 1945 - AT - Insolvency and Bankruptcy

Approval of Resolution Plan - grievance of the Appellant is that though the period of agreement for tenancy has come to an end and the Corporate Debtor had technically was required to hand over the possession of the premises but the possession of the premises has not handed over to the Appellant - HELD THAT - In terms of Section 14 of the Insolvency and Bankruptcy Code 2016 during the period of moratorium the Appellant cannot evict the Corporate Debtor from the premises in question even if during period of moratorium they have agreed to vacate it. The period of moratorium has come to an end on 19th April 2018 i.e. date of approval of resolution plan under Section 31 therefore now it is open to the Appellant to get the Corporate Debtor evicted if it is still in occupation in accordance with law. However as the Adjudicating Authority is not competent authority to pass any order for eviction Adjudicating Authority rightly not passed any such order. The observations should not be construed to be for finding that the Appellant is the Land lord or the Corporate Debtor is the Tenant of the premises which can be decided by a court of competent jurisdiction - appeal disposed off.

Summary

Issues involved:
Challenge to approval of resolution plan by Adjudicating Authority, Possession of premises not handed over by Corporate Debtor, Applicability of Section 14 of the Insolvency and Bankruptcy Code, 2016, Competency of Adjudicating Authority to order eviction.

Analysis:
The Appellant, as the landlord of the registered office of the Corporate Debtor, challenged the order approving the resolution plan by the Adjudicating Authority. The grievance was that despite the tenancy agreement ending, the possession of the premises was not handed over to the Appellant.

The Tribunal considered the provisions of Section 14 of the Insolvency and Bankruptcy Code, 2016, which prohibits eviction during the moratorium period. The moratorium period had ended on the date of approval of the resolution plan. The Tribunal clarified that now the Appellant could seek eviction of the Corporate Debtor if still in occupation, following the due process of law. However, the Adjudicating Authority was not the competent authority to issue such eviction orders.

It was emphasized that the Tribunal's observations did not determine the landlord-tenant relationship between the parties, as that falls under the jurisdiction of a court of competent authority. The appeal was disposed of with the above clarifications, and no costs were awarded in the matter.