# In the matter of Bhagawant Narayan Naik vs. Ritesh R. Mahajan & Ors.

> NCLAT judgment dated 2024-11-21. Citation: TCN-2024-NCLAT-00726. The case involves two appeals (CA (AT) (CH) (Ins) No. 394/2024 and CA (AT) (CH) (Ins) No.…

- **Court:** NCLAT
- **Order date:** 21 Nov 2024
- **Citation:** TCN-2024-NCLAT-00726
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-chennai/bhagawant-narayan-naik-vs-ritesh-r-mahajan-ors-51a7785e

## Summary

### Background

The case involves two appeals (CA (AT) (CH) (Ins) No. 394/2024 and CA (AT) (CH) (Ins) No. 395/2024) emanating from a common impugned order dated 22.10.2024. The appeals challenge the rejection of IA No. 167/2024 and IA No. 417/2024 in CP (IB)197/BB/2022 by the Adjudicating Authority.

## Facts

CIRP proceedings against Sovereign Industries Limited were initiated in October 2022.

The subject land was sold by Basavaraj Ningappa Arekeri, a Suspended Director of the Corporate Debtor, to Chidanand Sangappa Patil on 23.01.2023.

Chidanand Sangappa Patil sold the land to the Appellant on 24.02.2023 via a registered Sale Deed.

The Corporate Debtor was admitted into CIRP on 28.03.2023.

The Appellant filed a Civil Suit (O.S. No. 16/2024) seeking a permanent injunction on 16.01.2024.

The Resolution Professional filed an application on 08.02.2024, arguing that the Civil Suit is not maintainable due to provisions of CPC, Section 14 of I&B Code, and Section 238 of I&B Code.

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## Issues and analysis

### Issue 1: Whether the property claimed by the Appellant is part of the Corporate Debtor's assets and subject …

**Ratio:** The property is considered part of the Corporate Debtor's assets due to its use for

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**Reasoning:** The Tribunal considered the location of the property, its integration with the Corporate

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**Interpretation:** Section 18 of the I&B Code is interpreted to mean that if the property was

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**Application:** The Tribunal applied the principle that the Appellant could not have obtained a

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** BHAGAWANT NARAYAN…
- **Respondents:** Sovereign…; Ritesh R. M…; +2 more
- **Other parties:** Basavaraj…
- **Advocates:** E. Om Pr…; Adith Jah…; +2 more

## Timeline

- **2022-10-01 — Initiation…**: CIRP proceedings against Sovereign…
- **2023-01-23 — Sale by Suspended…**: Basavaraj Ningappa Arekeri, Suspended Director,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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