# In the matter of Sumati Suresh Hegde & Ors. vs. Anand Sonbhadra, RP of Champalalji Finance Pvt. Ltd. & Ors.

> NCLAT judgment dated 2025-01-09. Citation: TCN-2025-NCLAT-00274. The appeal challenges an order dated 05.04.2024 by the National Company Law Tribunal (NCLT),…

- **Court:** NCLAT
- **Order date:** 9 Jan 2025
- **Citation:** TCN-2025-NCLAT-00274
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sumati-suresh-hegde-ors-vs-anand-sonbhadra-rp-of-champalalji-finance-pvt-ltd-ors-a2e07bbf

## Summary

### Background

The appeal challenges an order dated 05.04.2024 by the National Company Law Tribunal (NCLT), Mumbai Bench, C-IV, regarding an application (I.A No. 4632 of 2023) filed in CP (IB) No. 541/MB/2021 under Section 60(5) read with Section 25(2)(a) of the Insolvency and Bankruptcy Code, 2026. The Resolution Professional (RP) of Champalalji Finance Pvt. Ltd. (Corporate Debtor) sought a direction to handover control and custody of a property (Villa Mohindra Outhouse) from the Appellants, predecessors in interest of Late Shri Suresh Padmanabha Hegde. The NCLT allowed the application, leading to the present appeal.

## Facts

Champalalji Finance Pvt. Ltd. (Corporate Debtor) entered Corporate Insolvency Resolution Process (CIRP) on 17.03.2023. Anand Sonbhadra was appointed as the RP on 26.04.2023. The RP sought to take possession of a property (Villa Mohindra Outhouse) owned by the CD, which was occupied by Sumati Suresh Hegde & Ors. (Appellants) who claimed tenancy rights. The Appellants' predecessor, Late Shri Suresh Padmanabha Hegde, was declared a tenant in a 2009 court decree. The CD, after purchasing the property, filed an eviction suit (RAE Suit No. 149 of 2011) against the Appellants, which was pending when CIRP commenced. The RP filed I.A. No. 4632 of 2023 under Section 60(5) of the IBC to evict the Appellants. The NCLT allowed the RP's application, leading to the appeal. The

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## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction under Section 60(5) of the IBC to direct the eviction of a …

**Ratio:** The NCLT's jurisdiction under Section 60(5) of the IBC is limited to matters directly

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**Reasoning:** The court reasoned that Section 60(5) of the IBC provides the NCLT with a wide discretion

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**Interpretation:** Section 60(5) of the IBC should be interpreted in a manner that respects the

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**Application:** In this case, the dispute primarily concerns the tenancy rights of the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Sumati Suresh…
- **Respondents:** Champalalji…; Anand Son…

## Timeline

- **2023-03-17 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Champalalji Finance Pvt.…
- **2023-04-26 — RP Appoin…**: Anand Sonbhadra appointed as the Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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