# In the matter of Kuldeep Anopsinh Chudasma vs. Sunil Kumar Agarwal, RP of Yogiraj Spinning Ltd. & Ors.

> NCLAT judgment dated 2023-07-03. Citation: TCN-2023-NCLAT-00423. This is an appeal against the order of the Adjudicating Authority dated 17.05.2023, which…

- **Court:** NCLAT
- **Order date:** 3 Jul 2023
- **Citation:** TCN-2023-NCLAT-00423
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kuldeep-anopsinh-chudasma-vs-sunil-kumar-agarwal-rp-of-yogiraj-spinning-ltd-ors-4880aee0

## Summary

### Background

This is an appeal against the order of the Adjudicating Authority dated 17.05.2023, which allowed an application filed under Section 19 of the IBC by the Resolution Professional. The appellant challenges the order, arguing that Respondent No. 4 was a tenant continuing from 2019 based on a rent deed, paying Rs. 1 lakh per month. The Adjudicating Authority allegedly passed the order without considering submissions and the reply of the Appellant and Respondent No. 4.

## Facts

Kuldeep Anopsinh Chudasma filed an appeal against an order by the Adjudicating Authority dated 17.05.2023. The order allowed an application filed by the Resolution Professional of Yogiraj Spinning Ltd. & Ors. under Section 19 of the IBC. The appellant argued that Respondent No. 4 was a tenant since 2019 based on a rent deed, paying Rs. 1 lakh monthly. The Resolution Professional refuted this, stating the rent deed was for 61 months and unregistered. The Adjudicating Authority did not rely on the rent deed, and the NCLAT upheld this decision, dismissing the appeal. The rent deed's validity is central to the case, as unregistered documents for periods exceeding 12 months are not legally valid.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in allowing the application under Section 19 of the IBC …

**Ratio:** Section 19 of the IBC allows the Resolution Professional to seek assistance from the

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**Reasoning:** The Adjudicating Authority considered the submissions and evidence presented by both

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**Interpretation:** Section 19 of the IBC is interpreted to empower the Resolution Professional to

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**Application:** The Adjudicating Authority correctly applied Section 19 by allowing the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Kuldeep Anopsinh…
- **Respondents:** Yogiraj Spinning…; Sunil Kumar…
- **Advocates:** Arjun S…; Henna G…; +6 more

## Timeline

- **2023-05-17 — Order of Adjudicating…**: The Adjudicating Authority passed an order allowing the application filed under Section…
- **2023-07-03 — Hearing by…**: Learned Counsel for the Appellant and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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