# In the matter of Canara Bank vs. Bhagyanagar Hotels Private Limited & Ors.

> NCLAT judgment dated 2024-04-29. Citation: TCN-2024-NCLAT-00475. This case involves a Company Appeal (AT) (CH) (INS) No. 13 of 2024 filed under Section 61 of…

- **Court:** NCLAT
- **Order date:** 29 Apr 2024
- **Citation:** TCN-2024-NCLAT-00475
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/canara-bank-vs-bhagyanagar-hotels-private-limited-ors-7c655e15

## Summary

### Background

This case involves a Company Appeal (AT) (CH) (INS) No. 13 of 2024 filed under Section 61 of the Insolvency and Bankruptcy Code, 2016. The appeal arises from an order dated 04.12.2023 in IA (IBC) 265/2023 in CP (IB) No. 651/7/HDB/2018 passed by the National Company Law Tribunal (NCLT), Hyderabad Bench - I. The core issue revolves around the eviction of M/s. Bhagyanagar Hotels Private Limited (Appellant) from a property claimed to be part of the liquidation estate of Sainath Estates Private Limited, where Krishna Mohan Gollamudi is the liquidator (Respondent). Canara Bank, claiming a financial interest in the property, sought to be impleaded in the main appeal, arguing it held a charge over the superstructures on the land. The NCLT order directed the Appellant to vacate

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## Facts

M/s. Bhagyanagar Hotels Private Limited (Appellant) is in occupation of a property consisting of land and superstructures. The land belongs to M/s. Sainath Estates Private Limited (Corporate Debtor), which is undergoing liquidation with Mr. Krishna Mohan Gollamudi as the liquidator (Respondent). Canara Bank claims to have sanctioned working capital facilities to the Appellant, secured by a composite hypothecation agreement and an equitable mortgage over the superstructures. A Memorandum of Understanding (MOU) dated 26.07.2012 was entered into between the Appellant and the Corporate Debtor, allegedly entitling the Appellant to a 30-year stay or compensation in case of eviction. A registered lease deed dated 30.09.2017, between the Appellant and the Corporate Debtor,

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## Issues and analysis

### Issue 1: Whether the NCLT had the jurisdiction to pass …

**Ratio:** The NCLT, under Section 60(5) of the I&B Code, has jurisdiction to adjudicate

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**Reasoning:** The Tribunal reasoned that the eviction of the Appellant directly relates to the

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**Interpretation:** Section 60(5) is interpreted to provide the NCLT with broad powers to deal with

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**Application:** The Tribunal applied this ratio to the facts, holding that the NCLT's order was

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## Parties

- **Judges:** M. Venu…; Sharad Kumar…; +1 more
- **Appellants:** M/s. BHAGYANAGAR…
- **Respondents:** Sainath Estates…; Krishna Mohan…; +1 more

## Timeline

- **1993-11-01 — Chiraan Fort Club…**: The Chiraan Fort Club…
- **2010-10-22 — BPS Proce…**: GHMC approved the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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