# In the matter of Nazru S Basheer vs. Pancard Clubs Ltd. and Anr.

> NCLAT judgment dated 2025-05-30. Citation: TCN-2025-NCLAT-00361. The appeal challenges an order dated 06.05.2025 by NCLT Mumbai, directing the appellant to…

- **Court:** NCLAT
- **Order date:** 30 May 2025
- **Citation:** TCN-2025-NCLAT-00361
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nazru-s-basheer-vs-pancard-clubs-ltd-and-anr-77eacb81

## Summary

### Background

The appeal challenges an order dated 06.05.2025 by NCLT Mumbai, directing the appellant to hand over possession of a hotel building named 'MB International'. The RP filed I.A.3958 of 2023 seeking possession, which was allowed by the Adjudicating Authority.

## Facts

The hotel building in question belonged to the Corporate Debtor (CD) against which CIRP was initiated under Section 7.

On 03.07.2017, the CD entered into a Conducting Agreement with the appellant, granting the right to run the hotel 'MB International' for six years.

In 2022, CIRP was initiated against the corporate debtor.

The Resolution Professional (RP) issued e-mails in December 2022 and January 2023 seeking information about the property, which were initially ignored.

The RP instituted I.A.3958 of 2023 seeking a direction to the appellant to deliver vacant possession of the hotel property.

The appellant resisted I.A.3958 of 2023, arguing that possession was handed over only in 2021 and that the Conducting Agreement allowed for extension.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in directing the appellant to hand over possession of the …

**Ratio:** The Adjudicating Authority was correct in

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**Reasoning:** The Conducting Agreement had expired, and the appellant had no right to continue

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**Interpretation:** Section 14 of IBC imposes a moratorium, implying a status quo regarding the

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**Application:** The moratorium prevented the appellant from continuing possession of the hotel

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## Parties

- **Judges:** N. Sesha…; Ashok Bh…; +1 more
- **Appellants:** Nazru S B…
- **Respondents:** Pancard Clubs…; Chemhub Tradelink…
- **Advocates:** Asav R…; Kashish C…; +7 more

## Timeline

- **2017-07-03 — Conducting Ag…**: The Corporate Debtor entered into a…
- **2022-N/A — CIRP Init…**: CIRP was initiated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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