How can a licensor regain possession of premises from an insolvent licensee in India?

Question from prakash mankaney, How can a licensor regain possession of premises from an insolvent licensee in India?

Answer from AI:

In India, regaining possession of premises from an insolvent licensee can be a complex process. It is essential to follow the appropriate legal procedures and consider the impact of the licensee’s insolvency on the situation. Here are some general steps you may consider taking:

1. Review the license agreement

Examine the terms and conditions of the expired license agreement to understand your rights and obligations as a licensor. The agreement may contain provisions related to termination, vacation of premises, and consequences of non-compliance.

2. Send a legal notice

Since you have already issued two vacation notices, it is crucial to ensure that these notices comply with the legal requirements. If necessary, consult a legal professional to draft and send a legally valid notice, explicitly stating the licensee’s breach of the agreement and demanding vacation of the premises within a specified time.

3. Initiate legal proceedings

If the licensee fails to vacate the premises after receiving the legal notice, you may consider initiating legal proceedings. In India, you can file a suit for eviction under the relevant state rent control laws or the Transfer of Property Act, 1882, depending on the nature of the license agreement and the jurisdiction.

4. Address the insolvency proceedings

As the licensee is under the National Company Law Tribunal (NCLT) due to insolvency, it is essential to consider the impact of the insolvency process on your claim. The Insolvency and Bankruptcy Code, 2016 (IBC) governs the insolvency process in India. You may need to:

• File a claim with the Resolution Professional (RP) appointed by the NCLT, stating your claim for possession of the premises.
• Monitor the insolvency proceedings and participate in the Committee of Creditors (CoC) meetings, if applicable.
• Consider the possibility of negotiating with the RP or the CoC to reach a settlement for the vacation of the premises.

5. Seek legal advice

Given the complexity of the situation, it is highly recommended to consult a legal professional for personalized advice. A lawyer can help you navigate the legal procedures, draft appropriate notices, represent you in court, and guide you through the insolvency process.

In conclusion, regaining possession of premises from an insolvent licensee in India requires following the appropriate legal procedures and considering the impact of the insolvency process. It is crucial to consult a legal professional for personalized advice and assistance in this matter.