# In the matter of Bharati Defence & Infrastructure Ltd.

> NCLT judgment dated 2024-02-14. Citation: TCN-2024-NCLT-02609. The case involves two applications, I.A. 2876/2023 and I.A. 3743/2023, filed in the matter of…

- **Court:** NCLT
- **Order date:** 14 Feb 2024
- **Citation:** TCN-2024-NCLT-02609
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bharati-defence-infrastructure-ltd-9843ce4f

## Summary

### Background

The case involves two applications, I.A. 2876/2023 and I.A. 3743/2023, filed in the matter of C.P.(IB) No. 292/MB/2017 concerning the liquidation of M/s Bharati Defence and Infrastructure Ltd. I.A. 2876/2023 was filed by the liquidator seeking to condone a delay in filing the application, approve the disclaimer of certain properties owned by the Corporate Debtor, and set off the liquidation value of the properties against the CIRP and liquidation costs. I.A. 3743/2023 was filed by Bhoir Dredging Company Private Limited, the lessor, seeking the admission of its claim for lease rentals and a direction to the liquidator to pay the outstanding dues. The Corporate Debtor was admitted into CIRP on June 6, 2017, and a liquidation order was passed on January 14, 2019.

## Facts

M/s Bharati Defence and Infrastructure Ltd. (Corporate Debtor) underwent CIRP, followed by liquidation. Mr. V. Vijay Kumar Iyer was appointed as the liquidator. Bhoir Dredging Company Private Limited (Bhoir) is the owner of land leased to the Corporate Debtor. The Corporate Debtor faced financial difficulties in 2013, leading to unregistered agreements with Bhoir for temporary support. A possession receipt was issued in May 2017, but the arrangement was not fully implemented. Bhoir submitted claims to the IRP and liquidator for outstanding lease rentals, amounting to Rs. 62,62,31,651/-. The liquidator offered a reduced rent of Rs. 14 lakhs per month, which Bhoir initially accepted but later contested. The liquidator sought to disclaim certain assets (Parcel 8) lying in

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## Issues and analysis

### Issue 1: Whether the liquidator should be permitted to disclaim the Corporate Debtor's assets (Parcel 8) …

**Ratio:** Regulation 10 of the Insolvency and Bankruptcy Board of India (Liquidation Process)

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**Reasoning:** The Tribunal reasoned that Bhoir's non-cooperation, including dismantling sheds and

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**Interpretation:** Regulation 10 provides a mechanism for the liquidator to relieve the Corporate

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**Application:** The Tribunal applied Regulation 10 to the facts of the case, finding that

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** V. Vijay Kumar…
- **Respondents:** M/s Bharati…; Bhoir Dredging…

## Timeline

- **2017-06-06 — CIRP Admi…**: Company Petition filed by the Financial Creditor was admitted against the Corporate…
- **2019-01-14 — Liquidation…**: A Liquidation Order was passed in the matter of the Corporate Debtor appointing 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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