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The Tax Publishers A Resolution Professional Cannot Evict a Tenant Under Insolvency and Bankruptcy Code Even if He is Not Paying Rent T.N. Pandey In the case of Devendra Padamchand Jain v. Sandhya Prakash (2018) 148 SCL 243 (NCLAT-New Del) the resolution professional tried to evict tenant on non-payment of rent. It was held that resolution professional can recover rent but cannot evict tenant. The learned author provides the promissories with a critical appreciation of that case. 1. Introduction The Insolvency and Bankruptcy Code, 2016 (IBC, for short in later discussion) is intended to assist in recovery of operational debt in rehabilitation proceedings by settlement of dues expeditiously and to make the operational debtors to stand on their feet and be free from financial sickness to which they might have, willingly or unwillingly fallen. The IBC is presently applicable to corporate debtors only. Its extension to individuals and partnership firm is to be notified later. 2. Operational debt An important word used in the above stated narration in the context of IBC is 'operational debtor'. This word has been defined in section 5(21) of the IBC thus:- 'Operational Debt' means a claim in respect of the provision of goods or services, including employment or a debt in respect of the repayment of dues arising under any law for the time being in force and payable to the Central Govt., any State Govt. or any local authority'. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

A Resolution Professional Cannot Evict a Tenant Under Insolvency and Bankruptcy Code Even if He is Not Paying Rent

T.N. Pandey

In the case of Devendra Padamchand Jain v. Sandhya Prakash (2018) 148 SCL 243 (NCLAT-New Del) the resolution professional tried to evict tenant on non-payment of rent. It was held that resolution professional can recover rent but cannot evict tenant. The learned author provides the promissories with a critical appreciation of that case.

1. Introduction

The Insolvency and Bankruptcy Code, 2016 (IBC, for short in later discussion) is intended to assist in recovery of operational debt in rehabilitation proceedings by settlement of dues expeditiously and to make the operational debtors to stand on their feet and be free from financial sickness to which they might have, willingly or unwillingly fallen. The IBC is presently applicable to corporate debtors only. Its extension to individuals and partnership firm is to be notified later.

2. Operational debt

An important word used in the above stated narration in the context of IBC is 'operational debtor'. This word has been defined in section 5(21) of the IBC thus:-

'Operational Debt' means a claim in respect of the provision of goods or services, including employment or a debt in respect of the repayment of dues arising under any law for the time being in force and payable to the Central Govt., any State Govt. or any local authority'.