NCLAT Affirms Resolution Professional’s Right to Terminate LLA and Recover Possession During Moratorium

The NCLAT (National Company Law Appellate Tribunal) has affirmed the "Resolution Professional's (RP) right to terminate a lease and recover possession" during the moratorium period. The tribunal's decision clarifies that the moratorium under the IBC is not a blanket protection against all actions. An RP can take actions that are necessary to protect the assets of the corporate debtor and to ensure the company remains a going concern, and terminating a lease that is not in the company's interest falls under this purview.