The Nationwide Firm Legislation Appellate Tribunal (NCLAT), an appellate courtroom, has dismissed an attraction filed by Reliance Realty, the exited entity from debt-ridden Reliance Communications, in search of restoration of rents and belongings from Unbiased TV, which had a DTH enterprise and is at the moment going through liquidation.
NCLAT rejected Reliance Realty’s plea and upheld an earlier order handed by the NCLT Mumbai Bench stating that the liquidation means of Unbiased TV (formally often known as Reliance Huge TV) have to be time-bound and accomplished within the shortest attainable time.
The 2-member bench stated the liquidation course of shouldn’t be “hindered and derailed by the appellant (Reliance Realty), who by no means instigated the difficulty of possession of the belongings within the rental property, with none justifiable motive”.
“We don’t discover any deficiency within the injunction order allowing the liquidator to take away all of the movable properties of the debentures situated within the leased premises and restraining the appellant from stopping the liquidator and the profitable bidder from accessing these movable properties,” the NCLAT stated.
Reliance Realty leased a portion of the DKAC premises (Dhirubhai Ambani Information Metropolis) together with pre-packaged infrastructure services on November 27, 2017.Unbiased Tv (company debtor) operates a Direct to Residence (DTH) enterprise and shops items.
Unbiased TV acquired the DTH enterprise from the Group on November 27, 2017 by coming into right into a share buy settlement together with a draft premises use settlement. The corporate paid service charges resembling rental charges, electrical energy payments, and upkeep charges till October 2018, however then did not pay them in a well timed method.
On February 26, 2020, chapter proceedings had been initiated in opposition to the corporate and all belongings had been handed over by the CEO to a decision skilled in accordance with the provisions of the Insolvency and Chapter Code (IBC).
As no purchaser might be discovered, the NCLT directed the graduation of liquidation of Unbiased TV on March 17, 2023 and an e-auction discover was issued.
However throughout the liquidation, Reliance Realty denied permission to potential bidders, specifically to examine the corporate’s belongings. The group claims that Unbiased TV has not paid the rental charges for the power for the previous 5 years, and calls for a refund of rental and electrical energy charges earlier than extending additional help, and in addition limits inspections.
In the meantime, Shree Sai Baba Ship Breaking Firm emerged because the profitable public sale bidder (SAP) for the belongings of Unbiased TV, following which the sale certificates and possession notice comprising 1,874 items of belongings/stock had been handed over on December 10, 2024.
Subsequently, Reliance Realty approached NCLT for restoration of excellent hire and different dues throughout the ongoing CIRP. Nonetheless, the Nationwide Firm Legislation Tribunal (NCLT) directed Reliance Realty to make sure that the liquidator and SAP have entry to the rented premises for dismantling/removing of the debentures’ belongings and don’t trigger any disturbance.
This was later challenged within the appellate courtroom NCLAT by Reliance Realty. The NCLT contended that the liquidator had wrongly approved the liquidator to take away belongings situated on the leased premises, together with these owned by Reliance Communications, merely on the belief that the belongings/items situated on the premises throughout the CIRP interval had been enough to determine title in favor of the debtor.
Nonetheless, this was additionally rejected by the NCLAT, observing that whereas passing the order, the NCLT had not solely considered the CIRP and developments within the matter throughout liquidation, but in addition the liquidator’s web site go to report and the truth that the products/belongings had been within the possession and management of the company debtor.
Earlier insolvency professionals throughout CIRP (Company Insolvency Decision) proceedings had already carried out honest and clear investigations to establish the precise possession of belongings situated in rental properties whereas custodian and managing the company debtor’s belongings.
“This was not disputed by RCom or the appellant (Reliance Realty) throughout the CIRP interval. Thereafter, when the liquidator took management and possession of the products/belongings situated within the leased premises, the identical was not disputed by the appellant until the completion of the public sale course of,” NCLAT stated.
Moreover, Reliance Realty was not a celebration to the SPA and thru the SPA the DTH enterprise was transferred to Unbiased Tv.
“We’re due to this fact persuaded to agree with respondent No. 1 (Liquidator of Unbiased Tv) that if there may be certainly any occasion who ought to really be prejudiced by this order, it ought to be RCom, a signatory to the SPA, which is at the moment in liquidation. “Defendant No. 1 has submitted that RCL is at the moment in liquidation however the liquidator/defendant No. 1 has not obtained any discover from the liquidator. On this regard, the liquidator of RCL has claimed possession of the belongings situated on the leased property,” NCLAT stated in its order.
issued – November 5, 2025 1:24 PM IST
