# In the matter of Precision Fasteners Ltd. MA 1007/2018, MA 751/2019 in C.P. No. IB)1339(MB)-2017

> NCLT judgment dated 2019-05-08. Citation: TCN-2019-NCLT-03393. The case involves an application (MA 1007/2018) filed by the Liquidator under Section 60(5)(c)…

- **Court:** NCLT
- **Order date:** 8 May 2019
- **Citation:** TCN-2019-NCLT-03393
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/precision-fasteners-ltd-ma-10072018-ma-7512019-in-cp-no-ib1339mb-2017-0e3f10ee

## Summary

### Background

The case involves an application (MA 1007/2018) filed by the Liquidator under Section 60(5)(c) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions regarding respondents occupying flats owned by the Corporate Debtor in Gurudev Co-op Housing Service Society. The Corporate Debtor was registered as a sick company with the Board for Industrial & Financial Reconstruction (BIFR) in 2003. The Liquidator issued notices to the occupants to vacate the flats. Some occupants complied, but Respondents 1, 2, and 4 continued to occupy the flats. Respondent 4 claimed possession based on a letter from the Corporate Debtor's manager, stating he was given possession until his dues were paid.

## Facts

The Liquidator filed MA 1007/2018 under Section 60(5)(c) of IBC, seeking directions regarding occupants of flats owned by the Corporate Debtor. The Corporate Debtor was registered as a sick company with BIFR since 2003. The Liquidator issued notices to vacate, but Respondents 1, 2, and 4 remained. Respondent 4 claimed possession of Flat D-11 based on a letter from the Corporate Debtor's manager, K.N. Disley, stating he was given possession as a labour contractor until his dues were paid. The Liquidator admitted Respondent 4's claim as an operational debt. The Liquidator argued that the unauthorized occupation of the flats was hindering the liquidation process and affecting the creditors' interests. The court noted that 11 occupants had already handed over peaceful

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## Issues and analysis

### Issue 1: Whether the letter issued by the Manager of the Corporate Debtor to Respondent No. 4 constitutes a …

**Ratio:** A letter of possession for an interim period until dues are paid does not constitute a

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**Reasoning:** The court determined that the letter issued by the Corporate Debtor's manager to

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**Interpretation:** The court interpreted the letter as not fulfilling the legal requirements for a

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**Application:** The ratio was applied to the specific facts, where the letter was deemed

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## Parties

- **Judges:** V. P. S…; Ravikumar…; +1 more
- **Appellants:** Alchemist Asset…
- **Respondents:** Precision…

## Timeline

- **2017-01-01 — C.P. No.(IB)1339(MB)/201…**: Filing of C.P.…
- **2018-03-12 — Appointment of…**: The applicant was appointed as Liquidator of the Corporate Debtor by an order dated…

## 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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