# In the matter of International Asset Reconstruction Co. Ltd. Vs. G. Gunasekaran & Ors. CA(AT)(Insolvency) No. 901-2019

> NCLAT judgment dated 2019-09-03. Citation: TCN-2019-NCLAT-00312. The case involves an appeal against an order by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 3 Sept 2019
- **Citation:** TCN-2019-NCLAT-00312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/international-asset-reconstruction-co-ltd-vs-g-gunasekaran-ors-ca-5c140edc

## Summary

### Background

The case involves an appeal against an order by the Adjudicating Authority (National Company Law Tribunal), Special Bench, Chennai. The Adjudicating Authority directed the Appellant, International Asset Reconstruction Co. Ltd., to hand over possession of a property to the Resolution Professional, as the ownership of the property was deemed to lie with the ‘Corporate Debtor'. The Appellant had taken possession of the property under the SARFAESI Act, 2002. The property in question was leased to the ‘Corporate Debtor' by the 2nd Respondent.

## Facts

International Asset Reconstruction Co. Ltd. (the Appellant), a Financial Creditor, took possession of a property admeasuring 34.20 acres under the SARFAESI Act, 2002. The property is located at Thirali II, Tirumangalam Taluk, Madurai Distt., bearing Survey Nos. 174/3A, 3B, 174/1, 180/4, 180/5, 174/3A, 174/4, 176/3A, 3B, 3C and 3D. The Adjudicating Authority (National Company Law Tribunal), Special Bench, Chennai, directed the Appellant to hand over the possession of the property to the Resolution Professional based on an application filed by the Resolution Professional. The basis for this direction was that the ownership of the property lies with the ‘Corporate Debtor'. The property in question was leased to the ‘Corporate Debtor' by the 2nd Respondent, Thiagarajan

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## Issues and analysis

### Issue 1: Whether the Appellant should hand over possession of the property to the Resolution Professional …

**Ratio:** The ratio is based on the interpretation of Section 18 of the ‘I&B Code' and its

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**Reasoning:** The court reasoned that while the ‘Interim Resolution Professional' has a duty to take

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**Interpretation:** The interpretation of Section 18 and its ‘Explanation' is crucial. The court

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**Application:** In this specific case, the property was leased to the ‘Corporate Debtor' but

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** International…
- **Respondents:** G. Gunase…

## Timeline

- **2000-06-01 — Lease De…**: Property leased to the ‘Corporate Debtor' by…
- **2019-07-17 — Impugned…**: Adjudicating Authority directed the Appellant to hand over possession of the property to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 18 — Duties of interim resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-18)

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