# In the matter of Kapil Steels Limited IA96(MP 2021 & IA-04(MP) 2022 in TP 127 of 2019 (CP(IB) 34 of 2019)

> NCLT judgment dated 2022-05-05. Citation: TCN-2022-NCLT-02870. The case involves a dispute over the leasehold rights and possession of industrial land and a…

- **Court:** NCLT
- **Order date:** 5 May 2022
- **Citation:** TCN-2022-NCLT-02870
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kapil-steels-limited-ia96mp-2021-ia-04mp-2022-in-tp-127-of-2019-cpib-34-of-2019-a9910f5e

## Summary

### Background

The case involves a dispute over the leasehold rights and possession of industrial land and a shed located in Pithampur, District Dhar. Indore Steels & Alloys Pvt. Ltd. (Indore Steels) claims ownership and possession of the land and shed, asserting that it legally acquired the leasehold rights from Madhya Pradesh Industrial Development Corporation Limited (MPIDCL). Jagdish Kumar Parulkar, the Resolution Professional (RP) and later Liquidator of Kapil Steels Limited, filed applications (IA 96/2021 and IA 4/2022) seeking to prevent Indore Steels from disturbing the possession of the land and shed, arguing that the transactions leading to Indore Steels' acquisition were voidable under the Insolvency and Bankruptcy Code (IBC). The dispute arose because Kapil Steels,

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## Facts

The key facts are as follows: 1. MPIDCL originally allotted a lease deed for the industrial land to Patni Carbides Pvt. Ltd. on February 7, 1987. 2. Patni Carbides transferred the land and shed to MPFC on February 23, 2010. 3. MPFC then sold the land and shed to Kapil Steels Private Limited on February 23, 2010, without receiving any consideration. Kapil Steels was supposed to secure a lease deed from MPIDCL within six months, but failed to do so for ten years. 4. Kapil Steels sold only the industrial shed (not the land) to Powerage Towers Pvt. Ltd. on February 1, 2020. 5. Indore Steels & Alloys Pvt. Ltd. claims it owns and possesses Industrial Plot No. 36-C/1, Industrial Area, Sector-3, Pithampur District Dhar, as a lessee of MPIDCL for a period of 99 years, vide

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## Issues and analysis

### Issue 1: Whether Indore Steels & Alloys Pvt. Ltd. legally and validly acquired leasehold ownership …

**Ratio:** The principle applied is that a valid leasehold interest can be acquired directly from

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**Reasoning:** The adjudicating authority reasoned that Indore Steels secured the lease deed directly

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**Interpretation:** The interpretation is that the failure of Kapil Steels to secure the lease deed

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**Application:** The ratio and reasoning apply to the facts because Indore Steels obtained a

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Indore Steels &…
- **Respondents:** Kapil Steels…; Jagdish Kumar…

## Timeline

- **1987-02-07 — Original…**: MPIDCL originally allotted a lease deed…
- **2010-02-23 — Transfer t…**: Patni Carbides transferred…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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