# In the matter of API Industries Private Limited

> NCLT judgment dated 2024-01-17. Citation: TCN-2024-NCLT-03038. The case involves an application filed under Section 60(5)(c) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 17 Jan 2024
- **Citation:** TCN-2024-NCLT-03038
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/api-industries-private-limited-0c072171

## Summary

### Background

The case involves an application filed under Section 60(5)(c) of the Insolvency and Bankruptcy Code (IBC) 2016 by P G Sales Corporation, the successful auction purchaser of certain assets from the liquidator of the Corporate Debtor. The assets were under liquidation as per the Tribunal's order dated 23.09.2019. The first respondent, Laxmanbhai Mohanbhai Vegad, a security guard, was residing on the corporate debtor's premises. The second and third respondents were the Police Inspector of Bortalav Police Station and Shri Kiran Shah, the liquidator of the corporate debtor, respectively. The applicant purchased land and industrial sheds through an e-auction held on 13.04.2023, and vacant possession was handed over by the liquidator on 21.06.2023.

## Facts

P G Sales Corporation, the applicant, purchased assets of a Corporate Debtor through an e-auction conducted by the liquidator, Shri Kiran Shah (Respondent No. 3). The e-auction, dated 12.03.2023, concerned land and building on Lease Rights of Land (2526.88 sq metres with Industrial Shed admeasuring 839.38 sq meters) situated at Plot No.36, C.S No.6095, Kumbharwada, Madhia Road, Bhavnagar. The applicant was the successful bidder on 13.04.2023 for Rs. 1,73,93,000 plus GST. A sale confirmation letter was issued on 17.05.2023, and vacant possession was handed over on 21.06.2023. However, Laxmanbhai Mohanbhai Vegad (Respondent No. 1), a security guard residing on the premises, refused to vacate, claiming tenancy rights. He had been staying there for 39 years, and the

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## Issues and analysis

### Issue 1: Whether the application filed by the auction purchaser, P G Sales Corporation, is maintainable …

**Ratio:** Section 60(5)(c) of the IBC 2016 provides the NCLT jurisdiction to deal with any question

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**Reasoning:** The court reasoned that the dispute regarding possession arose after the vacant

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**Interpretation:** Section 60(5)(c) is interpreted to apply to matters directly related to the

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**Application:** Since the dispute arose after the applicant obtained vacant possession, the

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** P G Sales…
- **Respondents:** Laxmanbhai…

## Timeline

- **2019-09-23 — Tribunal…**: Tribunal orders that the…
- **2023-03-12 — E-Auction…**: Date of the e-auction for the…

## 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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