The National Company Law Appellate Tribunal (NCLAT) has reiterated that a Resolution Professional (RP) is empowered to recover possession of a corporate debtor’s assets from unauthorized occupants through proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) and need not initiate a separate civil suit for eviction.
The matter arose after the commencement of the Corporate Insolvency ResolutionProcess (CIRP) against Majestic Hotels Ltd. on July 3, 2024. Upon taking charge the Resolution Professional found that several areas of the hotel, including a salon on the second floor, thirteen shops on the third floor and certain guest rooms, continued to be occupied by former promoters, their associates and related…