# In the matter of B. D. Motors Limited I.A. No. (IBC)-302-2022 in C.P. (IB) No. 188-KB-2019

> NCLT judgment dated 2022-06-13. Citation: TCN-2022-NCLT-02244. The case involves an application under Section 60(5) read with Section 34 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 13 Jun 2022
- **Citation:** TCN-2022-NCLT-02244
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/b-d-motors-limited-ia-no-ibc-302-2022-in-cp-ib-no-188-kb-2019-18ffce8c

## Summary

### Background

The case involves an application under Section 60(5) read with Section 34 of the Insolvency and Bankruptcy Code, 2016. Monotrone Leasing Private Limited, the Financial Creditor, initiated proceedings under Section 7 of the Code, which were admitted on March 12, 2020. Due to the absence of a resolution plan, Bimal Kanti Choudhury was appointed as the Liquidator on January 6, 2022. The Liquidator made a public announcement and subsequently appointed valuers to assess the Corporate Debtor's assets. However, the respondent, Animesh Mozumder, obstructed the valuation process and claimed tenancy rights over the Corporate Debtor's property, leading to the current dispute.

## Facts

Monotrone Leasing Private Limited initiated insolvency proceedings against B.D. Motors Limited under Section 7 of the IBC. The application was admitted on March 12, 2020. Bimal Kanti Choudhury was appointed as the Liquidator on January 6, 2022, due to the absence of a resolution plan. The Liquidator made a public announcement on January 11, 2022, setting February 5, 2022, as the deadline for claim submissions. On January 12, 2022, the Liquidator appointed valuers to assess the Corporate Debtor's land and building. An email was sent to Respondent No.1 on January 16, 2022, seeking vacant possession of the Durgapur Unit. Respondent No.1 did not reply and allegedly obstructed the valuation process. The Liquidator personally visited the Durgapur Unit and handed over a

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## Issues and analysis

### Issue 1: Whether the City Civil Court at Calcutta has jurisdiction to entertain the suit filed by Respondent …

**Ratio:** The principle of territorial jurisdiction dictates that a court can only adjudicate

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**Reasoning:** The NCLT notes that Respondent No.1's suit in the City Civil Court, Calcutta, seeks a

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**Interpretation:** The interpretation of territorial jurisdiction is crucial in determining which

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**Application:** In this case, the Durgapur Unit of the Corporate Debtor is located in Durgapur.

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** Monotrone Leasing…
- **Respondents:** B. D. Motors…; Animesh Mo…

## Timeline

- **2020-03-12 — Section 7 Application…**: Application under Section 7 of the IBC by…
- **2022-01-06 — Liquidator Ap…**: Bimal Kanti Choudhury appointed as…

## 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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