Atul Paper Pvt. Ltd. Vs Rakesh Kumar Jain (NCLAT Delhi)
NCLAT Delhi held that possession of unit by virtue of section 53A of the Transfer of Property Act is not admissible in case the agreement to sell is unregistered. Accordingly, sale consideration paid is directed to be refunded.
Facts- The Appellant entered into an Agreement to Sell dated 24.04.2018 with the CD – RG Infra Build Pvt. Ltd. for sale of commercial unit for a total sale consideration of Rs.2.70 crores. Atul Paper Pvt. Ltd. paid an amount of Rs.2.01 crores towards sale consideration and possession of the unit was also handed over to the Atul Paper Pvt. Ltd. on 25.04.2018. However, no Sale Deed could be executed in favour of Atul Paper Pvt. Ltd. The Corporate Insolvency Resolution Process against the CD commenced on 25.09.2019. Atul Paper Pvt. Ltd. along with its two Directors filed a claim of Rs.2.51 crores before the RP. The claim of the Appellant was rejected by the RP on 27.08.2021.
The RP after coming to know that Atul Paper Pvt. Ltd. is in possession of the commercial unit owned by the CD, filed an application seeking a direction to Atul Paper Pvt. Ltd. to vacate the premises.
