# In the matter of Modella Textile Industries Limited IA-1439-2023 in CP (IB) No. 68-MB-IV-2021

> NCLT judgment dated 2023-06-06. Citation: TCN-2023-NCLT-03079. The Interlocutory Application No. 1439/2023 was filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 6 Jun 2023
- **Citation:** TCN-2023-NCLT-03079
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/modella-textile-industries-limited-ia-1439-2023-in-cp-ib-no-68-mb-iv-2021-5ba38247

## Summary

### Background

The Interlocutory Application No. 1439/2023 was filed by the Resolution Professional (RP) seeking directions to the City Development & Planning Officer, Thane Municipal Corporation (Respondent No. 1) and Sr. Inspector of Police, Thane (West) (Respondent No. 2) to stop the unauthorized usage of land belonging to Modella Textile Industries Limited (Corporate Debtor) for unauthorized parking of vehicles. The Corporate Insolvency Resolution Process (CIRP) had commenced on 04.05.2022, and a moratorium under Section 14 of the IBC was imposed. The RP discovered that land belonging to the Corporate Debtor was being used for unauthorized parking.

## Facts

The Corporate Insolvency Resolution Process (CIRP) commenced for Modella Textile Industries Limited on 04.05.2022. Bhrugesh Amin was appointed as the Resolution Professional (RP). The RP filed an Interlocutory Application (IA-1439/2023) on 02.03.2023 seeking directions to stop the unauthorized parking of vehicles on land belonging to the Corporate Debtor. The land in question is Plot No. Land bearing C.S. No. 1592 to 1597 and 1599 to 1638, Tikka No. 33,34 and 37 of Village Panchpakhadi. The RP had written letters to the City Development & Planning Officer (Respondent No. 1) and the Sr. Inspector of Police, Thane (West) (Respondent No. 2) on 13.12.2022 and 23.02.2023, respectively, seeking their assistance in stopping the unauthorized parking. However, no action was

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## Issues and analysis

### Issue 1: Whether the Resolution Professional is entitled to an order directing the respondents to stop the …

**Ratio:** Section 25(1) of the IBC mandates the Resolution Professional to preserve and protect the

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**Reasoning:** The court reasoned that the unauthorized parking on the Corporate Debtor's land was

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**Interpretation:** Section 25 of the IBC imposes a clear obligation on the Resolution Professional

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**Application:** The court applied the ratio to the facts by holding that the RP was entitled to

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Bhrugesh…
- **Respondents:** Modela Textile…; City Development…

## Timeline

- **2022-05-04 — Commencement…**: Corporate Insolvency Resolution Process (CIRP) commenced for Modella Textile Industries…
- **2022-12-13 — Letter to Respondent…**: RP wrote a letter to the City Development & Planning Officer seeking assistance to stop…

## 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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