NCLT Mumbai: Assets Of CD Held By Third Parties Must Be Released To RP For Revival And Resolution Of CD

The NCLT Mumbai bench, comprising Justice V.G. Bisht (Retd.) and Mr. Prabhat Kumar, ruled that assets of the Corporate Debtor held by third parties must be returned to the Resolution Professional for the resolution process. The case involved disputes over leased aircraft engines between TWC Aviation Capital Limited and Jet Airways (India) Limited. The RP sought the return of an engine held by TWC Aviation, arguing it was essential for the Corporate Debtor's revival. NCLT Mumbai directed TWC Aviation to return the engine and dismissed claims of lien, emphasizing that such disputes should be addressed through the insolvency resolution process. The tribunal also ordered TWC Aviation and SpiceJet Limited to pay usage fees. This decision clarifies the handling of assets in insolvency proceedings, affirming RP authority over third-party-held assets for resolution.