The National Company Law Appellate Tribunal (NCLAT) rejected the appeals on the ground that the liquidator of the corporate debtor had the absolute authority to evict the subsidiaries occupying the properties of the corporate debtor and claim arrears of rent and license fees under Section 60(5) of the Insolvency and Bankruptcy Code, 2016.
The corporate debtor Doshion Pvt. Ltd., possessed properties in Ahmedabad and Mumbai, which were occupied by its subsidiaries under lease and license agreements. One of the leases was unregistered and another new lease was executed and registered after the admission of CIRP and the moratorium order.
Upon the failure of the resolution process the company went into liquidation…