# In the matter of API Industries Private Limited

> NCLT judgment dated 2024-01-17. Citation: TCN-2024-NCLT-03019. 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-03019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/api-industries-private-limited-ac003534

## 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 primary issue arose because Laxmanbhai Mohanbhai Vegad, a security guard staying at the corporate debtor's premises, refused to vacate, claiming tenancy rights. The applicant sought the court's intervention to obtain peaceful possession of the purchased property.

## Facts

P G Sales Corporation, the applicant, was the successful auction purchaser of assets belonging to the Corporate Debtor. The auction was conducted by the liquidator, Respondent No. 3, following orders from the Tribunal dated 23.09.2019. The e-auction took place on 12.03.2023, and the applicant was declared the successful bidder on 13.04.2023. The assets, consisting of land and industrial sheds, were purchased for Rs. 1,73,93,000 plus GST. A sale confirmation letter was issued on 17.05.2023, and vacant possession was handed over to the applicant on 21.06.2023. However, Laxmanbhai Mohanbhai Vegad, Respondent No. 1, a security guard who had been staying on the premises for 39 years, refused to vacate, claiming tenancy rights. He had previously filed civil suits regarding

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## Issues and analysis

### Issue 1: Whether the Tribunal has jurisdiction to entertain an application regarding a dispute arising after …

**Ratio:** The Tribunal's jurisdiction under Section 60(5) of the IBC is limited to matters related

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**Reasoning:** The court reasoned that the primary objective of the liquidation process is to realize

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**Interpretation:** Section 60(5) of the IBC is interpreted to provide a mechanism for resolving

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**Application:** In this case, since the liquidator had already handed over vacant possession of

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## Parties

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

## Timeline

- **2019-09-23 — Tribunal…**: Tribunal orders…
- **2023-03-12 — E-Auction…**: E-auction conducted for the sale…

## 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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