# In the matter of Bharati Defence & Infrastructure Ltd.

> NCLT judgment dated 2024-02-14. Citation: TCN-2024-NCLT-02603. 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-02603
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bharati-defence-infrastructure-ltd-a0c0a115

## 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, approve the disclaimer of certain properties of the Corporate Debtor stored at the premises of Bhoir Dredging Company Private Limited, and set-off the liquidation value of the properties against CIRP and liquidation costs. I.A. 3743/2023 was filed by Bhoir Dredging Company Private Limited, the lessor, seeking admission of its claim for lease rentals and a direction to the liquidator to pay outstanding dues. The Corporate Debtor was admitted into CIRP on June 6, 2017, and a liquidation order was passed on

…

## Facts

Bhoir Dredging Company Private Limited leased land to M/s Bharati Defence and Infrastructure Ltd. (Corporate Debtor) under registered Leave and License Agreements dated October 29, 2009, November 4, 2009, and January 4, 2010. The Corporate Debtor faced financial difficulties, leading to an unregistered agreement executed on March 25, 2014, and renewed until May 2017, with a lower rental rate. A Possession Receipt dated May 1, 2017, stipulated the handover of the land back to Bhoir, but this arrangement was not fully implemented. The Corporate Debtor was admitted into CIRP on June 6, 2017, and a liquidation order was passed on January 14, 2019. Bhoir submitted a claim of Rs. 62,62,31,651/- for unpaid lease rentals. The liquidator offered a partial payment based on a

…

## Issues and analysis

### Issue 1: Whether the liquidator is justified in seeking to disclaim the properties of the Corporate Debtor …

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

…

**Reasoning:** The Tribunal reasoned that Bhoir's non-cooperation and alleged misappropriation of assets

…

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

…

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

…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bharati-defence-infrastructure-ltd-a0c0a115