Supreme Court - Daily Orders
Narayan Singh Pathania vs Valuelabs Llp on 22 February, 2022
Bench: Indira Banerjee, J.K. Maheshwari
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 1563 OF 2022
(ARISING OUT OF DIARY NO. 17478 OF 2021)
PRADIP KRISHEN … Appellant(s)
VERSUS
VALUE LABS LLP & ORS. … Respondent(s)
O R D E R
Permission to file the appeal is granted. This appeal and the related application being IA No. 99004 of 2021 have been filed in extraordinary circumstances where the Appellant, the owner of Premises No.2, Kautilya Marg, New Delhi – 110021, hereinafter referred to as the “said premises”, is neither able to get back possession of the said premises from the Corporate Debtor, nor able to realise any rent/occupation charges for the same. The Appellant submits that he has been deprived of his income.
By a deed of lease dated 05.02.2009, the Appellant had leased out the said premises to the Respondent No.2, being the Corporate Debtor, for a period of three years w.e.f. 26.02.2009, i.e. upto 25.02.2012.
Signature Not Verified
After expiry of the lease, another deed of lease was Digitally signed by Rachna Date: 2022.03.07 executed on 22.03.2013 whereby the said premises were leased out 16:40:14 IST Reason:
for a period of three years from 26.02.2013 till 25.02.2016. By an addendum to the lease deed executed on 22.03.2013, the lease was 2 further extended till 25.02.2020. The lease expired by efflux of time on 25.02.2020.
In the meanwhile, Valuelabs Ltd. as Operating Creditor initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor by instituting Company Petition No.(IB) 2520/MB/2018 in the National Company Law Tribunal (NCLT), under Section 9 of the Insolvency and Bankruptcy Code 2016 (IBC). The said company petition was admitted by an order dated 02.12.2019 and a moratorium was imposed. One Mr. L.V. Shyamsundar was appointed as Interim Resolution Professional (IRP).
The Corporate Debtor and/or its erstwhile Director filed the said appeal No. CA(AT)(Insolvency) No. 1415/2019 in the National Company Law Appellate Tribunal (NCLAT) against the order dated 02.12.2019. By an order dated 09.12.2019, the NCLAT stayed the order dated 02.12.2019.
Since the Appellant had not received rent/occupation charges for the said premises for about 20 months, the Appellant called upon the Corporate Debtor to pay the outstanding rent/occupation charges and also to vacate the said premises by 25.02.2020, being the date on which the lease was due to expire by efflux of time. By a letter dated 24.01.2020, the Corporate Debtor informed the Appellant of the order of the NCLT dated 02.12.2019 and the consequential moratorium under Section 14 of the IBC.
Mr. L.V. Shyamsundar, who had been appointed IRP, resigned after which Mr. Arun Jain was appointed IRP by the NCLT on 3 05.02.2020. However, Mr. Arun Jain was found to be disqualified to act as an IRP for the Corporate Debtor. He could not, therefore take over the management of the Corporate Debtor. Both Mr. Abhijit Sinha appearing on behalf of the Corporate Debtor and Mr. Shyam Divan appearing for the Appellant submit that there is no IRP in- charge of the Corporate Debtor at present. In the circumstances, the Appellant made an application before the NCLAT for impleadment which has been dismissed.
The Corporate Debtor filed Civil Appeal No. 671 of 2021 in this Court, challenging the order dated 09.02.2021 whereby, the NCLAT had dismissed the appeal of the Corporate Debtor and its erstwhile Director, Narayan Singh Pathania, against the order dated 02.12.2019 of NCLT admitting the Company Petition. In the said Appeal No. 671 of 2021, this Court stayed further proceedings in the NCLT/NCLAT until further orders of this Court. The Appellant is neither able to approach the NCLT nor is able to initiate any further proceedings.
In the circumstances, the Appellant is unable to proceed against the Corporate Debtor for recovery of the said premises. Nor is the Corporate Debtor able to hand over possession of the said premises in view of Section 14(1)(d) of the IBC. The stay of proceedings in the NCLT/NCLAT, as observed above, is still in force.
There can be no dispute and it is not disputed that the lease of the said premises expired by efflux of time two years ago. The lease deed indicates that the said premises were residential 4 premises and were to be used by the Corporate Debtor as a Guest House for its Executives and employees or any other residential (non-commercial) use as will appear from the recital to the deed of lease dated 26.02.2009 and the subsequent lease deeds/addendum/ extensions etc. The purpose of the lease remained the same.
The Corporate Debtor has not been paying any rent or occupation charges for the said premises. The lease has admittedly expired by efflux of time. The Corporate Debtor has no right to use or occupy the said premises, which, it is reiterated, is residential premises let out for use as a guest house and/or other non-commercial purposes. By retaining the said premises which do not appear to be of much use to the Corporate Debtor, the Corporate Debtor will incur idle occupation charges which will add to the liability of the Corporate Debtor. The Applicant also ought not to be deprived of use of his property and/or his right to earn income from the said property.
In exercise of the jurisdiction under Article 142 of the Constitution of India, we therefore direct the Corporate Debtor to hand over vacant possession of the said premises to the Appellant on or by 15.04.2022.
In respect of the rent whether current or outstanding, the Appellant shall pursue such other remedies as may be available to the Appellant in accordance with law, before an appropriate forum. Needless to mention that all the rights and contentions of the parties are left open.
5IA No. 99004/2021 filed for impleadment/intervention is allowed and the Civil Appeal is disposed of.
…………………………………………………….. J.
[INDIRA BANERJEE] …………………………………………………….. J.
[J.K. MAHESHWARI] NEW DELHI;
FEBRUARY 22, 2022 6 ITEM NO.1 COURT NO.8 SECTION XVII S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeal No(s). 671/2021 NARAYAN SINGH PATHANIA Appellant(s) VERSUS VALUELABS LLP & ANR. Respondent(s)
(IA No. 123574/2021 - APPROPRIATE ORDERS/DIRECTIONS IA No. 39244/2021 - CLARIFICATION/DIRECTION IA No. 26123/2021 - EX-PARTE STAY IA No. 26124/2021 - EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT IA No. 98124/2021 - INTERVENTION/IMPLEADMENT IA No. 28543/2021 - PERMISSION TO FILE ADDITIONAL DOCUMENTS/FACTS/ANNEXURES IA No. 98129/2021 - RECALLING THE COURTS ORDER) WITH Diary No(s). 17478/2021 (XVII) (IA No. 99000/2021 - EXEMPTION FROM FILING C/C OF THE IMPUGNED JUDGMENT IA No. 99004/2021 - INTERVENTION/IMPLEADMENT IA No. 99003/2021 - PERMISSION TO FILE APPEAL IA No. 98998/2021 - STAY APPLICATION) Date : 22-02-2022 These matters were called on for hearing today. CORAM : HON'BLE MS. JUSTICE INDIRA BANERJEE HON'BLE MR. JUSTICE J.K. MAHESHWARI For Parties Mr. Shyam Divan, Sr. Adv.
Mr. Abhinav Mukerji, AOR Ms. Pratishtha Vij, Adv.
Mr. Akshay C. Shrivastava, Adv.
Ms. Rihu Sharma, Adv.
Mr. Abhijeet Sinha, Adv.
Mr. Malak Manish Bhatt, AOR Ms. Neeha Nagpal, Adv.
Mr. Rajat Bector, Adv.
Mr. Aditya Shukla, Adv.
Mr. Vishvendra Tomar, Adv.
Mr. Ankur Goel, Adv.
Ms. Misha Rohatgi, AOR 7 Mr. Nakul Mohta, Adv.
Mr. Devansh Srivastava, Adv.
Mr. Aditya Chadha, Adv.
Mr. Johnson Subba, Adv.
UPON hearing the counsel the Court made the following O R D E R IA NO. 98129 OF 2021 IN CIVIL APPEAL NO. 671 OF 2021 This is an application for recalling the order dated 26.02.2021 passed by this Court inasmuch as this Court dismissed the challenge to the order dated 09.02.2021 of the National Company Law Appellate Tribunal dismissing the application being IA No. 46/2021 filed by the applicant in Company Appeal(AT)(Insolvency) No. 1415/2019 for impleadment. It appears that this Court dismissed the challenge to the order dated 09.02.2021 without hearing the applicant.
The order dated 26.02.2021 is re-called to the extent that this Court found no grounds to interfere with the impugned order dismissing the IA No. 46/2021 in Company Appeal(AT)(Insolvency) No. 1415/2019 and rejected the challenged to the dismissal The rest of the order shall remain unchanged. The order dated 26.02.2021 shall read :-
“The appeal of the appellant against the dismissal of the appeal Company Appeal(AT)(Insolvency) No. 1415/2019 is admitted.
There will be stay of further proceedings pending in the NCLAT/NCLT, until further orders of this Court.” CIVIL APPEAL NO. 671 OF 2021 List on 23.02.2022 as part-heard.8
DIARY NO. 17478 OF 2021 Permission to file the appeal is granted. IA No. 99004/2021 for impleadment is allowed. The appeal is disposed of in terms of the signed order. Pending applications, if any, stand disposed of.
(MANISH ISSRANI) (MATHEW ABRAHAM)
COURT MASTER (SH) COURT MASTER (NSH)
(SIGNED ORDER IS PLACED ON THE FILE)