# In the matter of Raj Builders Vs. Raj Oil Mills Ltd. & Anr. CA (AT) No. 304-2018

> NCLAT judgment dated 2018-08-08. Citation: TCN-2018-NCLAT-00158. The Appellant, the landlord of the registered office of ‘Raj Oil Mills Ltd.' (Corporate…

- **Court:** NCLAT
- **Order date:** 8 Aug 2018
- **Citation:** TCN-2018-NCLAT-00158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/raj-builders-vs-raj-oil-mills-ltd-anr-ca-8ac7c09a

## Summary

### Background

The Appellant, the landlord of the registered office of ‘Raj Oil Mills Ltd.' (Corporate Debtor), challenged the order dated April 19, 2018, passed by the Adjudicating Authority (National Company Law Tribunal) Mumbai Bench, which approved the resolution plan earlier approved by the Committee of Creditors. The Appellant's grievance was that the tenancy agreement had ended, and the Corporate Debtor was technically required to hand over possession of the premises, but had not done so.

## Facts

The Appellant is the landlord of the registered office of Raj Oil Mills Ltd., the Corporate Debtor. The Adjudicating Authority approved a resolution plan for the Corporate Debtor. The Appellant challenged this order, arguing that the tenancy agreement had expired, and the Corporate Debtor was required to hand over possession but had not done so. The moratorium period under Section 14 of the Insolvency and Bankruptcy Code, 2016, was in effect. The resolution plan was approved on April 19, 2018, which also marked the end of the moratorium period. The Appellant sought to evict the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the Appellant could evict the Corporate Debtor from the premises during the moratorium …

**Ratio:** Section 14 of the Insolvency and Bankruptcy Code, 2016, imposes a moratorium that

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**Reasoning:** The court reasoned that the moratorium period prevents actions against the Corporate

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**Interpretation:** Section 14 is interpreted to provide a shield to the Corporate Debtor against

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**Application:** The court applied the ratio of Section 14 to the facts, concluding that the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Raj Bui…
- **Respondents:** Raj Oil Mil…; Raj Oil Mills…
- **Advocates:** Rahul Ch…; Aaditya A.…; +9 more

## Timeline

- **2018-04-19 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) Mumbai Bench passed an order…
- **2018-04-19 — End of Moratori…**: The moratorium period ended on the date of approval of the resolution plan under Section…

## 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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