# In the matter of Minerva Executive Apartments Private Limited

> NCLT judgment dated 2023-10-04. Citation: TCN-2023-NCLT-01402. The case involves an application filed by Virani Capital Services Private Limited, the…

- **Court:** NCLT
- **Order date:** 4 Oct 2023
- **Citation:** TCN-2023-NCLT-01402
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/minerva-executive-apartments-private-limited-7517351e

## Summary

### Background

The case involves an application filed by Virani Capital Services Private Limited, the successful bidder for the Corporate Debtor (CD), Minerva Executive Apartments Private Limited, which was undergoing liquidation. The applicant sought a direction that they are not liable to pay lease rentals to Respondent No. 1, Neelakanta Enterprises Private Limited, from the date of reconstitution of the Board and after changing the status of the CD from 'Liquidation' to 'Active'. The CD had entered into a lease agreement with Respondent No. 1 for land admeasuring 4088 Sq. Meters. The applicant argued that since the liquidation process was not formally completed, they were not obligated to pay the lease rent. The respondent contended that the applicant took possession of the

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## Facts

Minerva Executive Apartments Private Limited (Corporate Debtor) was undergoing liquidation. Virani Capital Services Private Limited (Applicant) emerged as the successful bidder. The Liquidator issued a Sale Notice dated 24.01.2021 for the sale of the CD as a whole as a going concern. The Applicant deposited an Earnest Money Deposit (EMD) of Rs.50,00,000/- and participated in an E-Auction on 03.02.2021, submitting a bid for Rs.9,14,00,000/-, and was declared the Successful Bidder on 03.02.2021. The Applicant paid the entire sale consideration along with an interest amount of Rs.8,95,035/- for a delay of 41 days on 20.04.2021, and the Liquidator issued a Sale Certificate on 11.05.2021. The CD had a lease agreement with Neelakanta Enterprises Private Limited (Respondent

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## Issues and analysis

### Issue 1: Whether the successful bidder of a corporate debtor sold as a going concern during liquidation is …

**Ratio:** The principle is that when a corporate debtor is sold as a going concern during

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**Reasoning:** The court reasoned that the applicant was aware of the lease agreement and had taken

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**Interpretation:** The court interpreted the provisions of the IBC and its Regulations to mean

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**Application:** In this case, the applicant, Virani Capital Services Private Limited, was the

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Virani Capital…
- **Respondents:** Minerva Executive…; Neelakanta…

## Timeline

- **2019-11-26 — Order to Liqu…**: Tribunal passed an order to…
- **2021-01-24 — Sale Notice…**: Liquidator issued Sale Notice for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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