Divyesh Desai RP of GPT Steel Industries Ltd. Vs Gujarat Industrial Development Corporation Bhuj (NCLAT Delhi)
NCLAT Delhi held that lease hold rights are assets of Corporate Debtor hence termination of the same by GIDC is in violation of section 14 of the Insolvency and Bankruptcy Code, 2016. Thus, appeal filed by Resolution Professional deserves to be allowed.
Facts- The CIRP against the CD commenced on an application filed u/s. 7 of the Insolvency and Bankruptcy Code, 2016 by an order dated 02.05.2019. The Resolution Professional (“RP”) issued publication inviting the claim from creditors. In pursuance of public announcement, claim in Form-C dated 30.07.2019 submitted by Gujarat Industrial Development Corporation (“GIDC”), Bhuj for an amount of Rs.3,96,92,490, which was partially admitted to the extent of Rs.1,54,35,313.
Notably, the GIDC had granted 99 years lease to the CD vide License Agreement dated 22.04.2004 and Lease Deed dated 06.10.2004 with respect to Plot No.301, on which CD was functioning. The CD entered into another Agreement vide allotment letter dated 20.12.2005 with respect to adjacent Plot No.338 to 341.
On 07.04.2022, a Show Cause Notice was issued by GIDC under Gujarat Public Premises (Eviction of Unauthorized Occupants) Act, 1972 with respect to Plot No.301 and Plot No.338 to 341 for non-payment of rent/instalment/ revenue charged totaling to Rs.1,22,86,283/-. By another letter of the same date, dated 07.04.2022, GIDC issued a termination order and terminated the lease.
