State Bank of India Vs Meenakshi Energy Ltd (NCLT Hyderabad)
Conclusion: In present facts of the case, the Hon’ble NCLT while taking into consideration the Interlocutory Application u/s. 60(5) of Insolvency and Bankruptcy Code, 2016, have observed that moratorium under Section 14 would not be applicable to the properties wherein the possession of the Corporate Debtor is unlawful.
Facts: In 2009 the Respondent “Corporate Debtor” approached the Andhra Pradesh Industrial Infrastructure Corporation Limited (“APIICL”) for allotment of land for installing a power plant in the District of Nellore, Andhra Pradesh. The APIICL upon considering the request of Corporate Debtor allotted 938.90 acres of land. In this case, APIICL mistakenly had allotted land of the Applicants herein to the Corporate Debtor, for setting up of power project. Aggrieved by this, the Applicant herein in this case, filed a Writ Petition WP(C) Nos. 32019, 32245 of 2010 before the Hon’ble High Court of Andhra Pradesh, seeking the relief of writ of mandamus and/or directions to the Government of Andhra Pradesh and its agencies not to allot or interfere with possession and enjoyment of the Applicants above stated Patta Lands which is in their possession. The APIICL in the counter affidavit filed before the Hon’ble High Court of Andhra Pradesh admitted their mistake in taking over the lands belonging to the Applicants and in handing over the same to the Corporate Debtor. Therefore, the Hon’ble High Court observed as under:
“The state has accepted the mistake of fact in acquiring the title and nature of holding of writ petitioners. This admission goes to the root of acquisition/resumption of petition lands by the State. The other respondents in my view cannot plead contrary to the stand taken by State to claim right or title to the petition lands. The writ petitions are allowed.”
