AKJ Metals Private Limited Vs Brijesh Singh Bhadauriya (NCLAT Delhi)
The NCLAT considered two appeals under Section 61 of the Insolvency and Bankruptcy Code, 2016 against orders dated 09.10.2025 of the NCLT, New Delhi, which approved the resolution plan of the Corporate Debtor and directed the appellant to hand over possession of the Nalagarh and Baddi properties to the Resolution Professional (RP). The Corporate Debtor had entered CIRP on 25.11.2022. Before commencement of CIRP, the appellant had entered into agreements to purchase both properties, paid the stated consideration, obtained possession, and subsequently instituted civil suits for specific performance. Those suits culminated in a Settlement Agreement dated 13.12.2021 and Consent Decrees dated 24.12.2021 appointing a Court Receiver to complete transfer formalities. During CIRP, the RP sought possession of both properties under Sections 18, 23 and 25 of the IBC, while also filing an application under Section 66 alleging fraudulent transactions. The resolution plan was approved with 98.05% voting share, and the Successful Resolution Applicant (SRA) filed an affidavit relinquishing all rights over the two properties.
The appellant contended that both properties had ceased to be assets of the Corporate Debtor prior to CIRP, possession had already been delivered, and its possessory rights were protected under Section 53A of the Transfer of Property Act, 1882. It argued that the NCLT could not nullify the Consent Decrees, disregard orders of competent courts, or adjudicate questions of title and ownership in summary IBC proceedings. It also submitted that the RP could not simultaneously pursue contribution under Section 66 and seek physical possession of the properties. The appellant further argued that after approval of the resolution plan and discharge of the RP, directing the RP to take possession was contradictory. The suspended directors and lessees supported the appellant’s case, asserting that possession had been transferred before CIRP and that the lease arrangements predated CIRP.
