# In the matter of  Raihan Healthcare Pvt. Limited IBA-240-IB-2019

> NCLT judgment dated 2020-05-15. Citation: TCN-2020-NCLT-01357. The District Collector of Kottayam, Kerala, filed an application stating that the District…

- **Court:** NCLT
- **Order date:** 15 May 2020
- **Citation:** TCN-2020-NCLT-01357
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raihan-healthcare-pvt-limited-iba-240-ib-2019-73ebefff

## Summary

### Background

The District Collector of Kottayam, Kerala, filed an application stating that the District Administration is arranging institutional quarantine for NRIs returning to the District due to the COVID-19 pandemic. Anticipating a large influx of returning NRIs, they sought to arrange infrastructure for isolation. The applicant expected over three thousand quarantine cases. They identified RIMS Hospital (Raihan Healthcare Private Limited), undergoing liquidation, as a suitable quarantine center and requested its use with minimal infrastructure additions. The petitioner stated that if they are allowed to use that hospital as a quarantine house, they will not make any structural changes and the same would be returned as in the same condition as received by them, after

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## Facts

The District Collector of Kottayam, Kerala, filed an application to arrange institutional quarantine for NRIs returning to the district due to the COVID-19 pandemic. The District Administration anticipated a large influx of returning NRIs and sought to arrange infrastructure for isolation. The applicant expected over three thousand quarantine cases. They identified RIMS Hospital (Raihan Healthcare Private Limited), which was undergoing liquidation, as a suitable quarantine center and requested its use with minimal infrastructure additions. The liquidator did not object to providing the hospital for this purpose, subject to certain conditions, including the applicant bearing the fixed electricity charges, all equipment's maintenance, cost of consumables in the hospital

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## Issues and analysis

### Issue 1: Whether the District Collector can use a hospital under liquidation as a quarantine center for NRIs …

**Ratio:** The court has the authority to grant permission for the use of a property under

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**Reasoning:** The court reasoned that the urgency of the COVID-19 pandemic and the need for quarantine

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**Interpretation:** This interprets the court's power to balance the interests of stakeholders in

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**Application:** The ratio and reasoning were applied to allow the District Collector to use the

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## Parties

- **Judges:** Ashok Kumar…
- **Appellants:** The District…
- **Respondents:** Raihan Health…; The Liquidator,…
- **Advocates:** Sathyanar…

## Timeline

- **2019-01-01 — Initiation of…**: Raihan Health Care Pvt. Limited is…
- **2020-05-15 — Order Da…**: The court allows the application of the District Collector to use the hospital as a…

## 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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