2022 (12) TMI 1059 - AT - Insolvency and Bankruptcy

Condonation of delay in filing appeal - Sufficient Cause for not preferring an Appeal was provided or not - HELD THAT - It comes to be known that the Leased Period of 15 years got expired on 16.01.2022 and the Corporate Debtor had lost his right to remain in possession of the property. But the Leased Premises was neither vacated nor the enhanced rent (which is outstanding) was paid to the Appellant till date - In the above background, the Appellant, had filed the application, seeking to direct the Respondent to vacate the Leased out premises immediately, in view of the expiry of lease, as on 16.01.2022. Alternatively, upon calculation of the CIRP period directed the Respondent to pay all the leased rental dues of Rs.2,82,63,305/- as on 28.02.2022 to the Appellant forthwith. Considering the fact, that a Lease, more than 12 months has to be registered in the manner known to Law and in accordance with Law and an unregistered Lease / Documents cannot be looked into by a Court of Law / Tribunal even for a collateral purpose, this Tribunal comes to a resultant conclusion that the Adjudicating Authority (Tribunal) had in the impugned order had mentioned that Dr. A.M. Arun had already paid the amount towards the Lease Rental and came to the right conclusion that IA/434(CHE)/2022 in CA/1/IB/2017 is not maintainable but had directed the Resolution Professional to pay the rent at Rs.2,25,000/- till the continuation of the Corporate Insolvency Resolution Process (CIRP), which was agreed to be paid. Appeal dismissed. Application dismissed.

Summary

Issues involved:
1. Condonation of delay in filing an appeal under the Insolvency & Bankruptcy Code, 2016.
2. Interpretation of lease agreements and the requirement of registration for enforceability.

Issue 1: Condonation of Delay in Filing Appeal:
The appellant, a senior citizen, filed an appeal with a delay of 12 days after the expiry of the 30-day period as per the Insolvency & Bankruptcy Code, 2016. The Appellate Tribunal, considering the appellant's age and difficulties faced in coordinating the appeal, condoned the delay of 12 days. The Tribunal emphasized a lenient and sympathetic approach, citing the appellant's old age as a valid reason for the delay. The decision was made within the permissible limit of 45 days, and the appeal was allowed without imposing any costs.

Issue 2: Interpretation of Lease Agreements and Registration Requirement:
The appellant sought relief in an application related to lease agreements for premises leased to a corporate debtor. The lease agreements were unregistered, leading to a dispute over the enforceability of the terms. The Adjudicating Authority found the application not maintainable due to the lack of registration of the lease deeds. Despite the appellant's reference to a Supreme Court judgment allowing determination of tenancy without a registered instrument, the Tribunal upheld the Authority's decision. The Tribunal emphasized the requirement of registration for leases exceeding 12 months and concluded that the application lacked merit. Consequently, the appeal was dismissed, and the related application was closed.

In summary, the Tribunal addressed the issues of condonation of delay in filing an appeal and the interpretation of lease agreements without registration. The decision highlighted the importance of timely appeals under the Insolvency & Bankruptcy Code and the legal significance of registered lease agreements for enforceability.