Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Appellant owns inter alia the lands in question ss.92 and 92A 1888 Mumbai Municipal Corporation Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Mumbai Municipal Corporation Act, 1888 (3 of 1888) |
Case(s) Referred | Referred Case 0 Referred Case 1 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Mumbai Municipal Corporation Act, 1888 – ss.92 and 92A – Appellant owns inter alia, the lands in question – By contract dated 20.12.2005, one ‘SHCL’ agreed to develop these lands (to be leased to it) and construct 1500 bed hospital – Construction was to be completed in 60 months (excluding monsoons) which ended on 24.04.2013 – Lease deed was to be executed after the completion of the project – Project not completed within the period – ‘SHCL’ had to pay lease rent at the annual rate of ` 10,41,04,000/- –Appellant alleged defaults in the payments – Issued show cause notice on 23.01.2018, proposing contract termination – Insolvency proceedings initiated by Axis Bank also as ‘SHCL’ was unable to repay its debts – Before the period given by appellant’s show-cause notice ended, the Petition was admitted by the National Company Law Tribunal (NCLT), Hyderabad Bench – 1st respondent was appointed as the Resolution Professional (RP), approved by Committee of Creditors (CoC)– Terms of the Request for Proposal (RFP), criteria for evaluation (of RFPs received) approved – Resolution plan submitted by one ‘SNMC’ – Revised RFP submitted by RP – Revised resolution plan approved by CoC – Appellant opposed the resolution plan – Plan approved by NCLT and the Appellate Tribunal, NCLAT – Held: Resolution plan contemplated infusion of capital and one of the modes for securing capital was mortgaging the land – In view of the clear conditions stipulated in the contract, the appellant reserved all its rights and thus, its properties could not have been, in any manner, affected by the resolution plan – Adjudicating authority could not have approved the plan which implicates the assets of the appellant especially when ‘SHCL’ had not fulfilled its obligations under the contract – Further, the resolution plan was never approved by the corporation – Also, s.238, IBC cannot be read as overriding the appellant’s right- indeed its public duty to control and regulate how its properties are to be dealt with– That exists in ss.92, 92A – s.238, IBC could be of importance when the properties and assets are of a debtor and not when a third party like the appellant is involved – Therefore, in the absence of approval in terms of ss.92 & 92A, the adjudicating authority could not have overridden appellant’s objections and enabled the creation of fresh interest in respect of its properties and lands – Authorities under the Code could not have precluded the control that the appellant has, under law, to deal with its properties and the land in question, which undeniably are public properties – Resolution plan therefore, would be serious impediment to appellant’s independent plans to ensure that public health amenities are developed in the manner it chooses, and for which fresh approval under the MMC Act may be forthcoming for a separate scheme formulated by it – Impugned order and the order of NCLT, set aside – Insolvency and Bankruptcy Code, 2016 – s.238 and ss.14(1)(d), 22, 30(2), 31, 62 – Interpretation of Statutes – IBBI (CIRP) Regulations, 2016 – Regulations 37, 38, 38(IA) & 39(4). Insolvency and Bankruptcy Code, 2016 – Aim of; insolvency process under– Discussed. Insolvency and Bankruptcy Code, 2016 – s.238 – Scope of |
Judge | Hon'ble Mr. Justice S. Ravindra Bhat |
Neutral Citation | 2019 INSC 1257 |
Petitioner | Municipal Corporation Of Greater Mumbai (mcgm) |
Respondent | Abhilash Lal & Ors. |
SCR | [2019] 14 S.C.R. 659 |
Judgement Date | 2019-11-15 |
Case Number | 6350 |
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