The National Company Law Tribunal's (NCLT) Mumbai Bench has held that a dispute over handing over possession after expiry of a lease period does not arise out of or relate to the insolvency resolution of a Corporate Debtor when the lease period expires after approval of its resolution plan.

"Accordingly, it cannot be said that the issue of handing over on expiry of lease period is arising out of or in relation to the insolvency resolution of the Corporate Debtor. Since, the cause of action has arisen after approval of the Resolution Plan, we do not consider that non handing over the possession of premises by Respondent No. 1 and 2 after determination of lease period results into obstruction in the implementation of the approved resolution plan," the court ruled.

It further observed that the Successful Resolution Applicant was to get the assets in the position they were in on the date of approval of the resolution plan.

A Bench comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar dismissed the Monitoring Committee Chairman's application seeking possession of premises from two occupants of Powerdeal Energy Systems India Private Limited.

Powerdeal Energy Systems India Private Limited was admitted into the Corporate Insolvency Resolution Process on July 11, 2024. Its resolution plan was approved by the court on October 16, 2025, after the Committee of Creditors approved it with 100% voting share.

The application concerned premises at F-29(A) and F-29(B), MIDC, Satpur, Nashik. It sought directions to Novacept Engineering Solutions Private Limited and Rachana Electromech & Engineering Works Private Limited to vacate the premises and hand over peaceful and vacant possession to the Successful Resolution Applicant.

The court noted that the two companies had been granted permission to use and occupy certain portions of the factory premises. It described them as licensees/occupants.

Neither the two occupants nor the applicant had enclosed any lease or licence agreement. The court therefore referred to the arrangement recorded in the minutes of the first Committee of Creditors meeting.

According to those minutes, the recorded lease period for Novacept was from June 1, 2024 to June 1, 2026. For Rachana, the recorded period was from January 15, 2023, to January 14, 2026. Both periods had expired, with no extension for a further period.

The court noted that the resolution plan was approved on October 16, 2025. At that time, both occupants were in valid possession of the properties.

Section 60(5)(c) of the Insolvency and Bankruptcy Code gives the insolvency court jurisdiction to deal with questions of law or fact arising out of or relating to the insolvency resolution or liquidation proceedings of a Corporate Debtor or corporate person.

In this case, the court noted that the issue of handing over the properties arose after expiry of the recorded lease periods. Those dates fell after approval of the resolution plan.

The court therefore held that the issue of handing over possession after expiry of the lease periods did not arise out of or relate to the insolvency resolution of Powerdeal Energy Systems India Private Limited.

It also held that the occupants' failure to hand over possession after determination of the lease period did not result in obstruction to implementation of the approved resolution plan.

The Successful Resolution Applicant was left at liberty to take any other proceeding permissible under law to seek possession of the premises from the two occupants.

The court accordingly dismissed the application.

For SRA: Adv. Nausher Kohli a/w Adv. Abha Patel

For Resolution Professional: it Gupta a/w Adv. Gaurav Jalendra

For Respondents: Adv. Amey Shejwal, Adv. Shubhankar Avhad 

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Case Title :  IDBI BANK LIMITED VS POWERDEAL ENERGY SYSTEMS INDIA PRIVATE LIMITEDCase Number :  C.P. (IB)/4072(MB)2019CITATION :  2026 LLBiz NCLT (MUM) 867
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