# In the matter of Precision Fasteners Limited MA No. 1512-2018 and other MAs in C.P. (IB) No. 1339-NCLT-MB-2017

> NCLT judgment dated 2020-10-27. Citation: TCN-2020-NCLT-00333. The case involves two Miscellaneous Applications (MAs), MA 1512/2018 and MA 47/2019, filed in…

- **Court:** NCLT
- **Order date:** 27 Oct 2020
- **Citation:** TCN-2020-NCLT-00333
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/precision-fasteners-limited-ma-no-1512-2018-and-other-mas-in-cp-ib-no-1339-nclt-00b23458

## Summary

### Background

The case involves two Miscellaneous Applications (MAs), MA 1512/2018 and MA 47/2019, filed in connection with Corporate Insolvency Resolution Process (CIRP) of Precision Fasteners Limited. MA 1512/2018 was filed by the Liquidator of Precision Fasteners Limited seeking orders to declare the occupation of a property by Siddhi Edibles Private Limited as illegal, to direct Siddhi Edibles to vacate the property, and to recover outstanding rent/compensation. MA 47/2019 was filed by Siddhi Edibles Private Limited seeking to quash the eviction notice issued by the Liquidator. The Liquidator claimed that Precision Fasteners Limited owned the property, which Siddhi Edibles occupied under a leave and license agreement that had expired. Siddhi Edibles contested the ownership and

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## Facts

Precision Fasteners Limited underwent Corporate Insolvency Resolution Process (CIRP). The Liquidator of Precision Fasteners Limited filed MA 1512/2018 seeking eviction of Siddhi Edibles Private Limited from a property allegedly owned by the Corporate Debtor. Siddhi Edibles Private Limited occupied the property under a leave and license agreement, which the Liquidator claimed had expired. The Liquidator argued that the Corporate Debtor owned the property based on an agreement dated 07/10/1983, where Pushpadevi Jain assigned rights to the Corporate Debtor, and a letter dated 24/10/1986 from the developer recognizing the Corporate Debtor's ownership. The Liquidator sent a notice on 17/04/2018 requesting Siddhi Edibles to vacate, which Siddhi Edibles refused. Siddhi

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction under Section 60(5) of the Insolvency and Bankruptcy Code to …

**Ratio:** The jurisdiction to decide on recovery of rent and eviction of tenants lies exclusively

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**Reasoning:** The NCLT relied on the Supreme Court's judgment in Embassy Property Developments Pvt.

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**Interpretation:** Section 60(5) of the IBC should not be interpreted to grant the NCLT

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**Application:** In this case, the dispute involves the recovery of rent and the eviction of a

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## Parties

- **Judges:** SUCHITRAKAN…; V. Nallasen…
- **Appellants:** Liquidator of…
- **Respondents:** Precision…; Siddhi Edibles…
- **Advocates:** Ankit L…; Vibha K…; +2 more

## Timeline

- **2018-03-12 — Appointment of…**: Applicant appointed as the…
- **1983-10-07 — Agreement…**: Agreement where Pushpadevi Jain…

## 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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