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2020 (9) TMI 122

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..... or licensee as such. Only giving property to manage school at the place would not be sufficient for the Appellant, to claim possession, when the Corporate Debtor goes in liquidation. There are no error in the Impugned Order where it directs that the Appellant will not disturb or obstruct the possession of Liquidator with regard to the property concerned. However, it appears to us that the direction passed by the Adjudicating Authority quashing Civil Suit, is not legal - Even if such bar is there, it is not appropriate for the Adjudicating Authority to quash the concerned suit which is filed in the Civil Court. It would be for the Liquidator to move the concerned Civil Court pointing out the provision of IBC or to move the District Court .....

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..... nch) quashed Civil Suit No.251/2019 on the file of Civil Court, Junior Division, Wada District Palghar, Maharashtra, and inter alia directed Police to arrest Appellant for threatening and obstructing Liquidator. 2. The Appellant claims that by Annexure A-2 (Page 34) letter dated 17th August, 2002 was issued by Vinod Gurbux Motwani. Appellant claimed that by such letter, Vinod Motwani who was Director to the Corporate Debtor had handed over possession of the part of the property of Corporate Debtor to the Appellant and thus, since 17th August, 2002, he has been in possession. Appellant claims that the School and Teachers quarters and staff quarters including that of factory were handed over by the Trustee to undertake education and char .....

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..... pellant and others claiming that Civil Court has no jurisdiction in view of provision of Sections 33(5), 60(5), 63(3), 231 and 238 of Insolvency and Bankruptcy Code, 2016 (IBC in short) and sought reliefs that Respondent No.1 (present Appellant) should remove goods from the Wada property and he should also be directed to pay rent for using the property. Further reliefs were sought to protect the property, by asking Police to act on his Complaint. 4. The Application came to be allowed by the Impugned Order. We asked the learned Counsel for the Appellant as to what is Appellant s status in law to be on the property. The Counsel stated that he was on the part of property of Corporate Debtor on the strength of letter dated 17th August, 200 .....

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..... us that the direction passed by the Adjudicating Authority quashing Civil Suit, is not legal. The Adjudicating Authority referred to Section 33(5). Section 33(5) of IBC reads as under:- (5) Subject to section 52, when a liquidation order has been passed, no suit or other legal proceeding shall be instituted by or against the corporate debtor: Provided that a suit or other legal proceeding may be instituted by the liquidator, on behalf of the corporate debtor, with the prior approval of the Adjudicating Authority. 6. Even if such bar is there, it is not appropriate for the Adjudicating Authority to quash the concerned suit which is filed in the Civil Court. It would be for the Liquidator to move the concerned Civil Court poin .....

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