# In the matter of Sarla Performance Fibres Ltd. vs. Vivek Murlidhar Dabhade

> NCLAT judgment dated 2025-04-24. Citation: TCN-2025-NCLAT-00088. The case involves three appeals challenging a common order passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 24 Apr 2025
- **Citation:** TCN-2025-NCLAT-00088
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sarla-performance-fibres-ltd-vs-vivek-murlidhar-dabhade-ad840bd3

## Summary

### Background

The case involves three appeals challenging a common order passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court – III). The order pertains to applications filed by the liquidator and the appellant, Sarla Performance Fibres Ltd., in relation to the Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation of Desimran Cartons Private Ltd. The core dispute revolves around a Leave and License Agreement between Sarla Performance Fibres Ltd. and Desimran Cartons, which the liquidator sought to disclaim as an onerous transaction.

## Facts

Desimran Cartons Private Ltd. owned a piece of land and a factory building in Amli. Jalgaon Janta Sahakari Bank Ltd. filed an application under Section 7 of the IBC to initiate CIRP against Desimran Cartons on 2019-05-08. Prior to the CIRP commencement, on 2019-06-07, Desimran Cartons entered into a Leave and License Agreement with Sarla Performance Fibres Ltd. for a rent of ₹5,000 per month for 12 years, with the bank's consent required due to an existing mortgage. CIRP commenced on 2022-03-28. The liquidator informed Sarla about the liquidation and requested a fresh agreement. Sarla did not respond initially but later offered a rent of ₹2,25,000 per month. The liquidator rejected Sarla's claim of ₹1,15,00,000. The liquidator sought to disclaim the Leave and License

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## Issues and analysis

### Issue 1: Whether the Leave and License Agreement dated 07.06.2019 is an undervalued transaction as defined …

**Ratio:** Section 45 of the IBC deals with undervalued transactions. An undervalued transaction is

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**Reasoning:** The Adjudicating Authority held that Section 45 was not applicable in this case. The

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**Interpretation:** Section 45 aims to prevent the corporate debtor from dissipating assets before

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**Application:** The Adjudicating Authority determined that the transaction did not meet the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Sarla Performance…
- **Respondents:** Desimran Cartons…; Vivek Murlidhar…

## Timeline

- **2019-05-08 — CIRP Applicati…**: Jalgaon Janta Sahakari Bank Ltd. filed an application under Section 7 of the IBC to…
- **2019-06-07 — Leave and License…**: Desimran Cartons Private Ltd. entered into a Leave and License Agreement with Sarla…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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