Tribunal advises appointing surveyor for disputed property measurement; Liquidator urged to pursue civil adjudication
In a significant ruling from the National Company Law Tribunal (Mumbai Bench) dated July 9, 2026, the Tribunal addressed a contentious dispute over the ownership and possession of an office property forming part of a liquidation estate. The case, titled Birendra Kumar Agrawal v. Middle East Management Services LLP, underscores the limitations of the Tribunal's jurisdiction in adjudicating complex title disputes.
The dispute originated from an application filed by Birendra Kumar Agrawal, the Liquidator for AJS Impex Private Limited, seeking the removal of alleged unlawful encroachments from a property located on the second floor of Trade Square Building, Mumbai. The Liquidator claimed the property as part of the liquidation estate under the Insolvency and Bankruptcy Code, 2016 (IBC).
The respondents, including Middle East Management Services LLP and Mr. Abdul Sattar, contested the application, asserting ownership and disputing the subdivision of the property into parts. The Tribunal found discrepancies in the title documents and emphasized that the jurisdiction under Section 60(5) of the IBC is intended for issues directly related to insolvency processes and not for complex property disputes requiring extensive evidence.
Highlighting the statutory duty of the Liquidator under Section 35 of the IBC to take control of assets, the Tribunal clarified that this duty does not extend to disputed ownership cases involving third parties. The Tribunal directed the Liquidator to appoint an independent architect or surveyor to inspect and measure the disputed premises. The findings from this exercise are to be used for potential civil court proceedings to resolve the title dispute.
The Tribunal's decision underscores the necessity for civil court intervention in adjudicating property title disputes, marking a pivotal moment in the interpretation of jurisdictional boundaries within insolvency proceedings.
Bottom line:-
Insolvency and Bankruptcy Code, 2016 - Dispute over title and possession of immovable property forming part of liquidation estate - Tribunal lacks jurisdiction to adjudicate complex title disputes requiring a full-fledged trial and appreciation of evidence. Liquidator should approach competent civil forum for determination of such disputes.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Section 60(5), Section 35; Liquidation Process Regulations, 2016.
