# In the matter of Vikas Jain Vs. MD Nazim Khan, Liquidator & Anr. CA(AT)(Ins)No.627 of 2020

> NCLAT judgment dated 2020-09-23. Citation: TCN-2020-NCLAT-00110. The case involves an appeal filed by a landlord (Vikas Jain) against an order passed by the…

- **Court:** NCLAT
- **Order date:** 23 Sept 2020
- **Citation:** TCN-2020-NCLAT-00110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vikas-jain-vs-md-nazim-khan-liquidator-anr-ca-184bc667

## Summary

### Background

The case involves an appeal filed by a landlord (Vikas Jain) against an order passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench – III) in relation to a corporate debtor (MD Nazim Khan, Liquidator & Anr.). The landlord claimed damages to the premises leased to the corporate debtor. The lease agreement was executed on December 11, 2017, for 11 months, with a monthly rent of Rs.1.5 Lakhs. The landlord alleged that the corporate debtor caused major damages to the premises due to negligence. The Adjudicating Authority appointed a valuer, who submitted a report stating that there was no structural damage to the building. The Adjudicating Authority dismissed the landlord's application, holding that the decisions taken by the liquidator

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## Facts

Vikas Jain (Appellant) leased premises to a Corporate Debtor. A lease agreement was executed on December 11, 2017, for 11 months, with a monthly rent of Rs.1.5 Lakhs. The Appellant claimed the Corporate Debtor caused major damages to the premises due to negligence, specifically heavy machinery causing cracks. The Corporate Debtor allegedly stopped paying rent after June 2018. The Adjudicating Authority (NCLT) appointed a valuer who reported no structural damage. The Appellant claimed Rs.1,15,50,350/- for damages. The Appellant also claimed the Corporate Debtor did not pay TDS from April 2018 to July 2018. The Appellant relied on clauses of the Lease Deed to claim damages. The Adjudicating Authority directed inspection of the premises by a Registered Valuer. The Lease

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor is liable for damages to the leased premises due to …

**Ratio:** The principle applied is that a lessee is only liable for damages caused by their

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**Reasoning:** The court relied on the valuer's report, which indicated no structural damage to the

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**Interpretation:** This issue involves interpreting the terms of the lease agreement regarding

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**Application:** In this case, the valuer's report indicated no structural damage, and there was

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## Parties

- **Judges:** A.I.S. C…; Shreesha…
- **Appellants:** Vikas…
- **Respondents:** MD Nazim…

## Timeline

- **2017-12-11 — Lease Agreement…**: Lease agreement executed between Vikas Jain (Appellant) and the Corporate Debtor for 11…
- **2018-01-01 — Lease Agreement…**: Lease agreement became effective…

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