# Victory Iron Works Ltd. vs. Jitendra Lohia & Anr. [Civil Appeal No.1743 of 2021]

> SC judgment dated 2023-03-14. Citation: TCN-2023-SC-00093. These appeals arise from a common order passed by the National Company Law Appellate Tribunal…

- **Court:** SC
- **Order date:** 14 Mar 2023
- **Citation:** TCN-2023-SC-00093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/victory-iron-works-ltd-vs-jitendra-lohia-anr-7e594181

## Summary

### Background

These appeals arise from a common order passed by the National Company Law Appellate Tribunal (NCLAT), Principal Bench, dismissing two independent appeals filed by Victory Iron Works Ltd. and Energy Properties Private Limited against an order of the National Company Law Tribunal (NCLT). The NCLT order confirmed an order of the Adjudicating Authority in two applications during the Corporate Insolvency Resolution Process (CIRP) of Avani Towers Private Limited. The dispute concerns a 10.19-acre land in Howrah, West Bengal, where Energy Properties is the ostensible owner, Avani Towers is the Corporate Debtor, and Victory Iron Works claims possession of a portion under a Leave and License Agreement.

## Facts

A financial creditor, M/s Sesa International Limited, initiated CIRP against Avani Towers Private Limited (Corporate Debtor) under Section 7 of the IBC. Avani Towers had provided finance to Energy Properties for purchasing a 10.19-acre land in Howrah and held 40% of Energy Properties' share capital. Victory Iron Works Ltd. claimed possession of a portion of the land (10000 sq. ft.) under a Leave and License Agreement dated 19.08.2011 with Avani Towers, while claiming to be in possession of the entire land. The Resolution Professional filed an application seeking to prevent Energy Properties and Victory from obstructing possession of the property. NCLT directed Victory and Energy Properties not to obstruct the Resolution Professional, which was upheld by NCLAT. The

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## Issues and analysis

### Issue 1: Whether the development rights created in favor of the Corporate Debtor constitute 'property' …

**Ratio:** The definition of 'property' under Section 3(27) of the IBC includes 'every description

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**Reasoning:** The court analyzed a series of documents, including MoUs, Shareholders Agreements, Sale

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**Interpretation:** The court interpreted the definition of 'property' under Section 3(27) of the

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**Application:** The court applied the ratio to the facts of the case, concluding that the

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## Parties

- **Judges:** V. RAMASUBR…; PANKAJ M…
- **Appellants:** VICTORY IRON…
- **Respondents:** Avani Towers…; JITENDRA LOHIA &…
- **Other parties:** 7th Edition…; Development…; +4 more

## Timeline

- **2019-10-15 — Company Petition…**: The company petition against Avani Towers Private Limited was admitted by the…
- **2019-11-14 — First Meeting of…**: The first meeting of the…

## 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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