#eviction during CIRP

The NCLAT has ruled that unregistered profit-sharing agreements, even if historically honored, cannot override the statutory moratorium under IBC to claim possession of corporate debtor assets. This clarifies that only registered leases or lawful tenancies survive CIRP, empowering Resolution Professionals to evict unauthorized occupants without prolonged litigation.

NCLAT rules that a pending application under Section 45 of the Insolvency and Bankruptcy Code challenging the validity of a lease deed prevents eviction on encroachment grounds until adjudication. The ruling reinforces status quo during corporate insolvency resolution, protecting occupants from dispossession until the lease's legitimacy is determined.