# In the matter of Patsons Construction vs. Shri Ram Ratan Kanoongo, Resolution Professional of D Thakkar Constructions 
Pvt. Ltd.

> NCLAT judgment dated 2023-11-07. Citation: TCN-2023-NCLAT-00092. This case involves an appeal against an order dated 2022-03-25 issued by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 7 Nov 2023
- **Citation:** TCN-2023-NCLAT-00092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/patsons-construction-vs-shri-ram-ratan-kanoongo-resolution-professional-of-d-tha-ab46a3f6

## Summary

### Background

This case involves an appeal against an order dated 2022-03-25 issued by the Adjudicating Authority, which directed certain actions regarding the corporate debtor's assets and usage charges. The Resolution Professional filed an application (I.A. 515/2022) seeking the handover of a machine and direction for usage charges. The appellant claims that the machine was already handed over and disputes the usage charges. The resolution plan for the Corporate Debtor was approved on 2021-08-09 by the CoC and 2022-03-14 by the NCLT.

## Facts

Patsons Construction, an operational creditor, filed an appeal against an order by the Adjudicating Authority. The order directed the handover of an asset (Komatsu Motor Grader GD-511) of the Corporate Debtor (D Thakkar Constructions Pvt. Ltd.) and the payment of usage charges of Rs. 2 lakhs per month for 24 months, totaling Rs. 48 lakhs. The Resolution Professional had filed I.A. 515/2022 seeking these directions. The appellant contends that the machine was already handed over and disputes the usage charges, stating that the machine was given in lieu of outstanding dues. The Resolution plan of the Corporate Debtor was approved by CoC on 2021-08-09 and by NCLT on 2022-03-14. The appellant claims they could not file their claim in the corporate insolvency resolution

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## Issues and analysis

### Issue 1: Whether the direction by the Adjudicating Authority for payment of Rs. 48 lakhs as usage charges is …

**Ratio:** The principle is that usage charges must be based on a valid agreement or legal basis. If

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**Reasoning:** The Tribunal reasoned that there was no rental agreement between the parties for the

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**Interpretation:** This issue involves the interpretation of principles related to contractual

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**Application:** In this specific case, the absence of a rental agreement and the fact that the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Patsons Constructi…
- **Respondents:** D. Thakkar…; Ram Ratan K…

## Timeline

- **2022-03-25 — Order by Adjudicating…**: The Adjudicating Authority issued an order directing the handover of the Corporate…
- **2022-10-19 — Tribunal…**: The Tribunal passed an order directing the appellant to hand over the machine within 15…

## 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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