# In the matter of M K Overseas Private Ltd. I.A. (IB) No. 185 of 2020 in C.P. (IB) No. 1731 of 2019

> NCLT judgment dated 2023-04-27. Citation: TCN-2023-NCLT-03605. The case involves an application filed by the resolution professional (RP) under Section 25…

- **Court:** NCLT
- **Order date:** 27 Apr 2023
- **Citation:** TCN-2023-NCLT-03605
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/m-k-overseas-private-ltd-ia-ib-no-185-of-2020-in-cp-ib-no-1731-of-2019-adaf9a91

## Summary

### Background

The case involves an application filed by the resolution professional (RP) under Section 25 read with Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking directions for the cancellation of a lease deed dated 18.10.2018 between the corporate debtor, MK Overseas Private Ltd., and the respondent, M/s MK Overseas Export Pvt Ltd. The RP also sought control and possession of the corporate debtor's property in Dera Bassi and a declaration that proceedings initiated by the respondent before the Civil Judge, Jr. Division, Dera Bassi, are illegal. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 19.09.2019, and Mr. Suresh Kumar Jain was appointed as the Interim Resolution Professional (IRP), later confirmed as

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## Facts

Mayoga Investment Limited, a financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against MK Overseas Private Ltd. The CIRP was initiated on 19.09.2019, and Suresh Kumar Jain was appointed as the Interim Resolution Professional (IRP), later confirmed as RP. An application was filed by the RP seeking the cancellation of a lease deed dated 18.10.2018, which was entered between the corporate debtor and M/s MK Overseas Export Pvt Ltd, the respondent. The lease agreement pertained to property in Dera Bassi, Punjab. The RP also sought control and possession of the property. The applicant contended that the lease agreement was a sham to defeat legal recourses after the corporate debtor's account was declared a Non-Performing Asset (NPA) by Bank of

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to determine the validity and sanctity of …

**Ratio:** The Adjudicating Authority's jurisdiction is generally limited to matters arising after

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**Reasoning:** The court reasoned that the application to determine the validity of the lease deed was

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**Interpretation:** The interpretation is that the NCLT's jurisdiction under the IBC primarily

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**Application:** In this case, because the lease deed was executed before the CIRP, the

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** Suresh Kuma…
- **Respondents:** MK Overseas…; M/s MK Overseas…
- **Advocates:** Anoop Prakash…; Kumar M…

## Timeline

- **2018-09-08 — Account decla…**: The account of the corporate debtor was…
- **2018-10-08 — SARFAESI Action…**: Action under the Securitization and Reconstruction of Financial Assets and Enforcement of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 25 — Duties of resolution professional](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-25)

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