# In the matter of Incab Industries Limited

> NCLT judgment dated 2024-04-18. Citation: TCN-2024-NCLT-01675. The case involves an application (I.A. (IBC) No. 519/KB/2022) in a Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 18 Apr 2024
- **Citation:** TCN-2024-NCLT-01675
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/incab-industries-limited-74a80df3

## Summary

### Background

The case involves an application (I.A. (IBC) No. 519/KB/2022) in a Corporate Insolvency Resolution Process (CIRP) under CP (IB) No.1684/KB/2018. The Resolution Professional (RP) of Incab Industries Limited sought reliefs related to the renewal of lease agreements for land leased to the Corporate Debtor by Tata Iron and Steel Company Ltd. (TATA Steel). The RP argued that the lease renewal is crucial for the resolution of the Corporate Debtor, which has structures and residential quarters on the leased land occupied by over 1000 families of employees/ex-employees. The CIRP was initiated on 07.08.2019, and initially, liquidation was ordered, but this was later quashed by NCLAT, leading to the appointment of a new RP.

## Facts

Incab Industries Limited is undergoing Corporate Insolvency Resolution Process (CIRP). Pankaj Kumar Tibrewal is the Resolution Professional (RP). TATA Iron and Steel Company Ltd. (TATA Steel) had leased land to Incab Industries. The initial lease agreement was executed on 28.06.1924 for 99 years. Subsequent sub-lease agreements were executed for additional land. The sub-lease agreements expired on 14.07.2019. CIRP commenced on 07.08.2019. TATA Steel directed Incab Industries to handover the land on 15.07.2019. Incab Industries developed its own township on the leased land, including factories, plants, and residential quarters. TATA Steel claimed that Incab Industries breached the lease terms by failing to pay lease rentals. The RP sought renewal of the lease

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## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction to direct the Respondent (TATA Iron and Steel Company Ltd.) …

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

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**Reasoning:** The NCLT reasoned that since the lease agreements expired before the CIRP initiation, the

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**Interpretation:** Section 60(5) of the IBC is interpreted to provide the NCLT with the power to

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**Application:** In this case, the lease agreements expired on 14.07.2019, while the CIRP

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Jayanta Ba…
- **Respondents:** INCAB Industries…; TATA Iron and…

## Timeline

- **1924-06-28 — First Lease A…**: The first lease agreement was executed between the Secretary of State of India in Council…
- **2019-07-14 — Lease Ex…**: The sub-lease agreements for additional areas of land collectively admeasuring 177.08…

## 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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