2025 (1) TMI 1154 - SCH - IBC

Cancellation of the lease deed by NOIDA - claim of right within meaning of Section 116 of Transfer of Property Act 1882 as a tenant holding over - exclusion of Plot No. SC-01/ D1 Sector 79 Noida from Resolution Plan submitted in the CIRP of the Corporate Debtor - it was held by NCLAT that application filed by the RP under Section 30(6) for approval of the Resolution Plan is rejected. HELD THAT - Issue notice returnable on 24th March 2025.

Summary

The Supreme Court, presided over by Justices Abhay S. Oka and Ujjal Bhuyan, addressed appeals concerning the liquidation of a corporate debtor. The Court issued a notice returnable by March 24, 2025, after hearing counsel for both parties. Key points from the judgment include: 1. **Upholding of Adjudicating Authority's Order**: The order dated January 11, 2024, by the Adjudicating Authority, which allowed the exclusion of Plot SC-01/D-1, Sector 79, NOIDA from the corporate debtor's assets, is upheld. 2. **Rejection of Resolution Plan**: As a consequence of the above order, the application under Section 30(6) for the approval of the Resolution Plan is rejected. 3. **Liquidation Order**: Due to the expiration of the Corporate Insolvency Resolution Process (CIRP) period, an order under Section 33(1) mandates the liquidation of the corporate debtor. Mr. Vikram Bajaj is appointed as the Liquidator to oversee this process. 4. **NOIDA's Actions**: NOIDA is advised to expedite the disposal of a pending writ petition in the Allahabad High Court, and subject to court orders, may proceed to reclaim assets and complete the project either by leasing the land to a new entity or other necessary measures. 5. **Stay on Liquidation Direction**: The Court has stayed the liquidation direction in clause (iii) of paragraph 56, pending the outcome of the writ petition. The Allahabad High Court is free to decide the writ petition in accordance with the law. The judgment emphasizes the potential impact of the writ petition on the leasehold rights of the corporate debtor, which could influence the Resolution Plan.