# In the matter of Pimpri Chinchwad Municipal Corporation vs. Jayanti Lal Jain, IRP of Windals Auto Pvt. Ltd.

> NCLAT judgment dated 2024-04-30. Citation: TCN-2024-NCLAT-00473. The appeal was filed against an order dated 02.02.2024 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 30 Apr 2024
- **Citation:** TCN-2024-NCLAT-00473
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pimpri-chinchwad-municipal-corporation-vs-jayanti-lal-jain-irp-of-windals-auto-p-94088aaa

## Summary

### Background

The appeal was filed against an order dated 02.02.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) in I.A.4379/2023 in C.P. (IB)/503(MB)/2021, which allowed I.A.4379/2023 filed by the Resolution Professional (RP). The RP filed the application seeking direction to handover the possession of the Corporate Debtor's property, which the Appellant (Pimpri Chinchwad Municipal Corporation) had attached for recovery of property tax.

## Facts

Pimpri Chinchwad Municipal Corporation (Appellant) attached the assets of the Corporate Debtor for recovery of property tax amounting to ₹29,86,959/- on 17.11.2019, prior to the initiation of the Corporate Insolvency Resolution Process (CIRP). The Resolution Professional (RP) filed an application (I.A.4379/2023) seeking direction to handover the possession of the Corporate Debtor's property. The Adjudicating Authority allowed the RP's application. The Appellant argued that the Respondent should have filed an appeal under Section 406 of the Maharashtra Municipal Corporation Act, 1949, before seeking de-attachment. The Respondent contended that they had already filed a claim in the CIRP, which was admitted by the RP. The RP's claim has been admitted for ₹27,66,333/- out

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority had jurisdiction to direct the de-sealing of the attachment of …

**Ratio:** Under Section 18 of the Insolvency and Bankruptcy Code, 2016, the RP is entitled to take

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**Reasoning:** The court reasoned that the Corporate Debtor is admittedly the owner of the assets, and

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**Interpretation:** Section 18 of the IBC grants the RP the power to take control of the corporate

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**Application:** Since the Corporate Debtor owned the assets, the RP was entitled to take

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Pimpri Chinchwad…
- **Respondents:** Windals Auto Pvt.…; Jayanti La…
- **Advocates:** Samrat K.…; Mitali…; +1 more

## Timeline

- **2019-11-17 — Attachment of…**: The Municipal Corporation attached the assets of the Corporate Debtor for recovery of…
- **2020-11-09 — Bombay High Court…**: Judgement of the Hon'ble Bombay High Court in W.P. (C) No.3396/2019 `The State of…

## 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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