# In the matter of M K Overseas Private Ltd. IA NO. 1281 of 2022 in C.P. (IB) No. 1731 of 2019

> NCLT judgment dated 2023-04-27. Citation: TCN-2023-NCLT-03606. The case involves an application filed by the Resolution Professional under Section 60(5) read…

- **Court:** NCLT
- **Order date:** 27 Apr 2023
- **Citation:** TCN-2023-NCLT-03606
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/m-k-overseas-private-ltd-ia-no-1281-of-2022-in-cp-ib-no-1731-of-2019-a1c58ee2

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 60(5) read with Section 49(1) of the Insolvency and Bankruptcy Code (IBC) for the recovery of monthly user charges/damages/mesne profit from MK Overseas Exports Pvt. Ltd. for the period starting from April 1, 2020. MK Overseas Exports Pvt. Ltd. was in possession of the Dera Bassi property as per a lease agreement dated October 18, 2018, which expired on September 30, 2021. During a hearing on July 20, 2021, MK Overseas Exports Pvt. Ltd. undertook to vacate the property by September 30, 2021, and pay the lease rental dues. However, they later refuted the payments and sought an extension of the lease period. The Resolution Professional sought directions for the respondent to pay user

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## Facts

Mayoga Investment Ltd. initiated insolvency proceedings against MK Overseas Private Ltd., the Corporate Debtor. Suresh Kumar Jain was appointed as the Resolution Professional (RP). MK Overseas Exports Pvt. Ltd. (Respondent) was in possession of the Corporate Debtor's Dera Bassi property based on a lease agreement dated October 18, 2018, which expired on September 30, 2021, with a monthly rent of Rs 25,00,000. During a hearing on July 20, 2021, the Respondent undertook to vacate the property by September 30, 2021, and pay the lease rental dues. However, the Respondent later refuted the payments and sought an extension of the lease period. The RP filed an application under Section 60(5) read with Section 49(1) of the IBC to recover monthly user charges/damages/mesne

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction under Section 60(5) of the IBC to entertain and adjudicate on the …

**Ratio:** Section 60(5) of the IBC grants the NCLT jurisdiction to entertain or dispose of any

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**Reasoning:** The court relied on precedents, including Tata Consultancy Services Limited v. Vishal

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**Interpretation:** Section 60(5) of the IBC is interpreted to provide a wide discretion to the

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**Application:** In this case, the court applied the ratio and reasoning to the specific facts,

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## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Mayoga Investment…
- **Respondents:** MK Overseas…; M/s MK Overseas…

## Timeline

- **2018-10-18 — Lease Agreeme…**: Lease agreement between Corporate Debtor and MK Overseas Exports Pvt. Ltd. for Dera Bassi…
- **2020-04-01 — Period for Recovery of…**: Start date for the period for which the Resolution Professional sought recovery of user…

## 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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