The Tribunal found that GIDC’s show cause notice, which was utilized to end the lease, clearly breached section 14 of the Code
The National Company Law Appellate Tribunal (NCLAT) New Delhi has ruled that lease hold rights existing in favour of corporate debtor cannot be terminated during moratorium period under section 14 of the Insolvency Bankruptcy Code (IBC), 2016.
In response to an application filed under Section 7 of the Code, a decision was made to initiate the Corporate Insolvency Resolution Process (CIRP) against Corporate Debtor (CD). The CD was granted a 99-year lease on Plot No.301, where it operated, by the Gujarat Industrial Development Corporation (“GIDC”) under a License Agreement dated 22.04.2004 and a Lease…
