Payment Of Lease Amount, Lease Rent And Premium Cannot Be Considered As CIRP Costs; Not Recoverable U/S 14 Of IBC: NCLAT New Delhi

The National Company Law Appellate Tribunal (NCLAT) in New Delhi ruled that lease amounts, lease rent, and premium cannot be considered as Corporate Insolvency Resolution Process (CIRP) costs and are not recoverable due to Section 14 of the Insolvency and Bankruptcy Code (IBC). The case involved a dispute over the classification of lease payments as CIRP costs. The NCLAT held that such payments are not part of the CIRP costs and cannot be recovered during the insolvency process. This ruling provides clarity on the classification of lease payments in insolvency proceedings and supports the proper application of the IBC.