Eviction of Tenant from Corporate Debtor’s Property Cannot be Sought Under u/s 60(5) of IBC: NCLAT

The NCLAT (National Company Law Appellate Tribunal) has ruled that the eviction of a tenant from the property of a corporate debtor cannot be sought under Section 60(5) of the Insolvency and Bankruptcy Code (IBC). The case involved a corporate debtor seeking eviction of a tenant from its property during the insolvency resolution process. The NCLAT ruled that such an eviction cannot be ordered under the IBC as it falls outside the scope of the code's provisions. The ruling clarifies the legal limits of the IBC and the rights of tenants during the insolvency proceedings of a corporate debtor. This decision provides clarity on the treatment of tenancy rights in insolvency cases and ensures that tenants are protected from arbitrary eviction during the resolution process.