Property not owned by Corporate Debtor cannot be sub-leased by liquidator without prior permission

Prabhat Jain Vs MP Industrial Development Corporation Limited. (NCLAT Delhi)

NCLAT Delhi held that liquidator cannot create sub-lease over properties not owned by the corporate debtor without prior permission of concerned authority. Accordingly, action to sub-lease without specific permission is incorrect and illegal.

Facts- The present Appeal has been filed by Mr. Prabhat Jain, Liquidator of M/s Narmada Cereal Pvt. Ltd. (the Corporate Debtor under liquidation) under 61(1) of the Insolvency & Bankruptcy Code, 2016 against the Impugned Order dated 28.04.2

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