# In the matter of Minerva Executive Apartments Private Limited

> NCLT judgment dated 2023-10-04. Citation: TCN-2023-NCLT-01411. The case involves an application filed by Virani Capital Services Private Limited, the…

- **Court:** NCLT
- **Order date:** 4 Oct 2023
- **Citation:** TCN-2023-NCLT-01411
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/minerva-executive-apartments-private-limited-b1b43928

## 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 purchased the CD as a going concern, and a sale certificate was issued. However, the applicant claimed that the liquidation process was not closed, and the Board of Directors was not

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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 for the Corporate Debtor. The Liquidator issued a Sale Notice dated 24.01.2021 for the sale of the Corporate Debtor as a going concern, including leasehold rights of land admeasuring 4088 Sq. Meters. The Applicant deposited an Earnest Money Deposit (EMD) of Rs.50,00,000/- and other required documents. The Applicant participated in an E-Auction conducted on 03.02.2021 and submitted a bid for Rs.9,14,00,000/-. The Liquidator declared the Applicant as 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 the delay

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## Issues and analysis

### Issue 1: Whether the successful bidder is liable to pay lease rent from the date of sale till the …

**Ratio:** The principle is that when a Corporate Debtor is sold as a going concern, the successful

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**Reasoning:** The court reasoned that the liquidation process does not culminate merely with the sale

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**Interpretation:** The interpretation of the IBC and its regulations suggests that the sale of a

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**Application:** In this case, the applicant was aware of the lease agreement and the associated

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## Parties

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

## Timeline

- **2007-01-28 — Lease Agreement…**: The lease agreement between Minerva Executive Apartments Pvt Ltd and Neelakanta…
- **2019-11-26 — Liquidation…**: The Tribunal passed an order to…

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