# In the matter of New Okhla Industrial Development Authority
Vs. Mr. Nilesh Sharma & Anr. Company Appeal (AT) (Insolvency) No. 288 of 2021

> NCLAT judgment dated 2022-03-08. Citation: TCN-2022-NCLAT-00594. This case involves a challenge to an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 8 Mar 2022
- **Citation:** TCN-2022-NCLAT-00594
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/new-okhla-industrial-development-authority-vs-mr-nilesh-sharma-anr-company-appea-1a10aa81

## Summary

### Background

This case involves a challenge to an order passed by the Adjudicating Authority (National Company Law Tribunal) regarding the inclusion of certain premises in the Corporate Insolvency Resolution Process (CIRP) of Dream Procon Pvt. Ltd. The New Okhla Industrial Development Authority (NOIDA) filed an appeal against the order, arguing that the premises should be excluded from the assets of the Corporate Debtor. The core issue revolves around a Joint Development Agreement (JDA) between Logix City Developers Pvt. Ltd. (the lessee of the land from NOIDA) and Dream Procon Pvt. Ltd. (the Corporate Debtor), and whether NOIDA's rights as the lessor are being infringed upon by the JDA and the CIRP.

## Facts

New Okhla Industrial Development Authority (NOIDA) allotted land under a Group Housing Scheme to Logix Soft-tel Pvt. Ltd. (later Logix City Developers Pvt. Ltd. or 'Logix'). A Lease Deed was executed between NOIDA and Logix. Logix entered into a Joint Development Agreement (JDA) with Dream Procon Pvt. Ltd. ('Corporate Debtor') to develop a Group Housing Project named 'Victory Ace'. The JDA involved Logix transferring development rights of 6,00,000 sq. ft. of Floor Space Index (FSI) to the Corporate Debtor. The Corporate Debtor commenced construction and obtained approvals from NOIDA. The project was registered under UPRERA. CIRP was initiated against the Corporate Debtor. NOIDA claimed it was unaware of the JDA and that Logix had illegally sub-divided the premises and

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## Issues and analysis

### Issue 1: Whether the Joint Development Agreement (JDA) between Logix and the Corporate Debtor is valid and …

**Ratio:** A lease deed does not prevent the lessee (Logix) from transferring development rights or

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**Reasoning:** The Tribunal found that the Lease Deed between NOIDA and Logix did not contain any clause

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**Interpretation:** The interpretation of the Lease Deed and the JDA is crucial in determining the

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**Application:** In this case, the absence of a restrictive clause in the Lease Deed, coupled

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## Parties

- **Judges:** Anant Bijay…; Shreesha…; +1 more
- **Appellants:** New Okhla…
- **Respondents:** Dream Procon Pvt.…; Nilesh S…

## Timeline

- **2011-06-08 — Lease Deed Ex…**: NOIDA grants leasehold rights over the…
- **2013-03-08 — Joint Development…**: Logix enters into a JDA with Dream Procon Pvt. Ltd. (Corporate Debtor) transferring…

## 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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