2023 (12) TMI 610 - AT - Insolvency and Bankruptcy

Admission of claim by Resolution Professional - fixation of rent amount with 5% increase - HELD THAT - In so far as the fixation of rent amount at Rs.1,09,448/- per month with 5% increase, it was decided in terms of the agreement and we see no ground to interfere with the said decision and the claim of the amount of Rs.1,71,875/- on the basis of the market value of the premises in question, the Corporate Debtor being in CIRP and the Corporate Debtor continuing being in occupation of the premises, the direction of the Adjudicating Authority to determine the rent as per the Agreement cannot be faulted. Due to mere fact that no invoices were issued by the Appellant after April, 2018, the claim could not have been reduced, now the Adjudicating Authority has itself found the amount to Rs.1,09,448/- per month, the claim for the months in which Corporate Debtor was in occupation of the premises may be determined. In view of the order of the Adjudicating Authority the claim filed by the Appellant in Form B may be admitted by the Resolution Professional and the Resolution Professional shall modify the claim as per the direction of the Adjudicating Authority in Clause (b), Para 4 of the impugned order. The appeal allowed in part to the extent that the claim in Form B is to be modified accordingly.

Summary

Issues involved:
The issues involved in the judgment are related to a dispute over rent and other claims between the Appellant, who claims to be the landlord of the premises occupied by the Corporate Debtor, and the Resolution Professional.

Rent Dispute:
The Adjudicating Authority accepted the claim of rent at Rs.1,09,448/- per month with a 5% increase, as per the terms of the agreement dated 15.05.2017. The Appellant challenged this decision, arguing that the market rate of the premises is Rs.1,71,875/- and should have been accepted. The Appellant also claimed damages for occupation as the agreement ended in April 2018, and no invoices were issued thereafter. The Resolution Professional defended the Adjudicating Authority's decision, stating that the agreed rent should be paid as per the agreement terms. The Resolution Professional admitted the claim only to the extent of invoices received.

Resolution of Rent Dispute:
The Appellate Tribunal upheld the Adjudicating Authority's decision on the rent amount, stating that the agreed rent was in accordance with the agreement terms. However, the Tribunal noted that the Appellant's claim should not have been reduced solely based on the lack of invoices post-April 2018. The Tribunal directed the Resolution Professional to admit the claim in Form B and modify it as per the Adjudicating Authority's direction in the impugned order. The appeal was partly allowed to modify the claim in Form B, while affirming the rest of the impugned order.

This summary highlights the key issues and details of the judgment regarding the rent dispute and other related claims between the parties involved.