# Sudha Apparels Ltd. vs. Mr. Ravi Sethia, RP of Future Lifestyle Fashion Ltd

> NCLAT judgment dated 6 Apr 2026. Citation: TCN-2026-NCLAT-00071. Sudha Apparels Ltd. (Appellant), owner of a property, leased it to M/s Home Solutions Retail…

- **Court:** NCLAT
- **Order date:** 6 Apr 2026
- **Citation:** TCN-2026-NCLAT-00071
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sudha-apparels-ltd-vs-mr-ravi-sethia-rp-of-future-lifestyle-fashion-ltd-dc97b33f

## Summary

### Background

Sudha Apparels Ltd. (Appellant), owner of a property, leased it to M/s Home Solutions Retail India Ltd. The lessee entity later became Future Retail India Ltd. (Corporate Debtor). The lease agreement allowed termination for two consecutive months of rent default. Alleging non-payment of rent since February 2022, the Appellant issued a rectification notice on March 9, 2023, followed by a termination notice on April 14, 2023. Subsequently, on May 4, 2023, the Corporate Insolvency Resolution Process (CIRP) commenced against the Corporate Debtor. The Appellant filed an application (IA No.4147/2023) before the National Company Law Tribunal (NCLT), Mumbai, seeking vacant and physical possession of the leased property. The NCLT dismissed this application via an order dated

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## Facts

Sudha Apparels Ltd. (Appellant) is the owner of the ground, first, and second floors of Plot No.5, Block-BG, Action Area-IB, New Town, Rajarhat, Kolkata, leased as 'leased property'.

A lease agreement was executed on September 17, 2008, between the Appellant and M/s Home Solutions Retail India Ltd. for a period of 21 years, allowing termination for default in two consecutive months' rent.

The business of M/s Home Solutions Retail India Ltd. was taken over by M/s Pantaloons Retails India Ltd. (PRIL) around March 16, 2013, which subsequently changed its name to Future Retail India Ltd., and then assigned its leasehold rights to the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether recovery of property by an owner or lessor is prohibited under Section 14(1)(d) of the IBC, …

**Ratio:** Section 14(1)(d) of the IBC prohibits the recovery of any property by an owner or lessor

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**Reasoning:** The NCLAT referenced the Supreme Court's interpretation in *Rajendra K. Bhutta v.

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**Interpretation:** The NCLAT interpreted Section 14(1)(d) strictly in the context of physical

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**Application:** Despite the Appellant's lawful termination of the lease prior to CIRP

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## Parties

- **Judges:** Yogesh K…; Ajai Das Me…
- **Appellants:** Sudha Apparels…
- **Respondents:** Future Lifestyle…; Ravi Se…; +1 more
- **Other parties:** Insolvency and…; Morato…; +10 more

## Timeline

- **2008-09-17 — Lease Agreement…**: A lease agreement was executed between Sudha Apparels Ltd. and M/s Home Solutions Retail…
- **2013-03-16 — Business Takeover and…**: The business of M/s Home Solutions Retail India Ltd. was taken over by M/s Pantaloons…

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