Gujarat HC Upholds NCLT’s Power to Direct Lessee to Vacate Corporate Debtor’s Property

This article discusses a Gujarat High Court judgment affirming that the National Company Law Tribunal (NCLT) has the authority to order a lessee to vacate property belonging to a corporate debtor. The decision clarifies the scope of NCLT’s powers under the Insolvency and Bankruptcy Code (IBC), particularly concerning control over assets of the debtor company during the resolution process. The Court held that the NCLT’s direction was within its jurisdiction to protect the interests of creditors and ensure effective insolvency resolution. It further reinforced that once a moratorium under Section 14 of IBC is declared, no person has the right to occupy or interfere with the corporate debtor’s property. The ruling strengthens the IBC framework by ensuring the debtor’s assets remain available for restructuring or liquidation, and by upholding NCLT’s supervisory control in such cases.