# In the matter of Haravtar Singh Arora, Erstwhile promoter of James Hotel vs. Navneet Gupta,
Liquidator of James Hotel & Anr. I.A. No. 507, 511 of 2023 in Company Appeal (AT) (Insolvency) No. 128 of 2023

> NCLAT judgment dated 2023-03-01. Citation: TCN-2023-NCLAT-00691. The appeal was filed against the order dated 04.11.2022 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 1 Mar 2023
- **Citation:** TCN-2023-NCLAT-00691
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/haravtar-singh-arora-erstwhile-promoter-of-james-hotel-vs-navneet-gupta-liquidat-625836b6

## Summary

### Background

The appeal was filed against the order dated 04.11.2022 passed by the National Company Law Tribunal, Chandigarh Bench, Chandigarh, which decided CA No. 15 of 2020 and I.A. No. 553 of 2020. The Appellant-Suspended Director of the Corporate Debtor challenged the order. The issue arose when the Liquidator issued an Auction Notice for the auction of the Corporate Debtor as a going concern. CA No. 15 of 2020 was filed challenging the Auction Notice, and subsequently, I.A. No. 553 of 2020 was filed after the auction held on 03.02.2023. Both applications were rejected by the impugned order.

## Facts

Haravtar Singh Arora, the erstwhile promoter of James Hotel, filed an appeal against the order passed by the National Company Law Tribunal (NCLT), Chandigarh Bench. The appeal contested the auction notice issued by the Liquidator, Navneet Gupta, for the auction of James Hotel as a going concern. The appellant argued that the property was leased from the Chandigarh Administration, and no permission was taken for its transfer. The appellant also contended that the auction should have been conducted under Clause 'a' to 'd' of Regulation 32-A since it was not completed within 90 days of the liquidation commencement date. The respondent argued that the lease deed remained in the name of the Corporate Debtor, and the shares of the corporate debtor were being sold. The NCLT

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## Issues and analysis

### Issue 1: Whether the auction of the Corporate Debtor as a going concern was valid given the leasehold nature …

**Ratio:** The court did not explicitly rule on the validity of the auction concerning the leasehold

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**Reasoning:** The court did not find any error in carrying out the auction of the corporate debtor as a

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**Interpretation:** The court interpreted that the ongoing lease deed in the name of the Corporate

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**Application:** The court applied this reasoning to the specific facts, noting that the lease

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Haravtar Singh…
- **Respondents:** James H…; Navneet…

## Timeline

- **2022-11-04 — Order by NCLT C…**: The National Company Law Tribunal, Chandigarh Bench, passed an order which is being…
- **2023-02-03 — Auction…**: Auction was held, subsequent to…

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