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2022 (10) TMI 931 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL , PRINCIPAL BENCH , NEW DELHIRemoval of the Leasehold Land from the pull of Assets of the Corporate Debtor - right to terminate the Lease Deed - Section 61 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- In the instant case, Noida has never taken any steps to revoke the lease. It was vehemently argued by the Learned Counsel for the Respondent that it was never the case of the Corporate Debtor that it had Ownership Right over the said Plot. It is only their case that if the Plot along with the development which has taken place thereon is a right to be taken out of pool of Assets of the Corporate Debtor, it would amount to violation of Section 14(1)d of the Code - In the present case, Leasehold Rights have already been created under the Lease Deed in favour of the Corporate Debtor by the Appellant as per the mandate of Section 14 of the Code. The Learned Adjudicating Authority in the Impugned Order has observed that the Assets referred to in the explanation given to Section 18 of the Code, are only Assets of such kind, which had come to the Corporate Debtor for rendering some services. It is significant to mention that the Hon’ble Supreme Court in a catena of Judgements has held that Lease Rentals arising out of the execution of such Lease Deeds, are not Financial Leases, but in fact, the amount claimed under such leases would construe Operational Debt and not Financial Debt - the Leasehold Rights is an Asset under Intangible Assets falling within the ambit of Section 18(f)(iv). It is the consistent stand of the Respondent that the said Plot is not owned by the Corporate Debtor, but it has only Leasehold Rights over it. The Leasehold Rights accrued to the Corporate Debtor vide the Lease Deed, is a right vested with the Corporate Debtor and is an Intangible Assets and the ownership is only to the extent of these Leasehold Rights based on which the Corporate Debtor can be continued as a Going Concern. It is also significant to mention that the Appellant has never initiated any proceedings or chosen to exercise their rights to invoke any of the Clauses of the Lease Deed for cancellation of the subject Deed - the Leasehold Right is an Intangible Asset of the Corporate Debtor and that the Resolution Professional is empowered under Section 18(f) of the Code to take control and custody of any Asset over which the ‘Corporate Debtor’ has the Ownership Right. Appeal disposed off.
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