Case Details

Case Name: IA (IBC)/585(CH) 2026 in CP (IB) No. 38/Chd/Pb/2018

Court/Authority: National Company Law Tribunal Chandigarh Bench (Court-I)

Parties: Mr. Rajesh Kumar Loomba (Liquidator of Julka Rice and Oil Mills Limited) as Applicant

Order Date: 21 May 2026

Presiding Members: Mr. Khetrabasi Biswal (Member Judicial), Mr. Shishir Agarwal (Member Technical)

Parties Involved

Applicant/Liquidator: Mr. Rajesh Kumar Loomba (IBBI/IPA-002/IP-N00170/2017-2018/10440)

Corporate Debtor: Julka Rice and Oil Mills Limited (Under Liquidation)

Legal Representation: Mr. Pulkit Goyal, Advocate for Applicant

Issues / Allegations / Violations

The application was filed under proviso to Section 33(5) read with Section 60(5) of the Insolvency and Bankruptcy Code, 2016 and Rule 11 of NCLT Rules, 2016. The Liquidator sought prior approval to institute execution proceedings before the Court of Additional District Judge, Gurdaspur to enforce an Award dated 30.11.2023 passed in LAC Case No. 02 of 27.03.2019 (RBT No. 10 of 18.04.2019). The Corporate Debtor was admitted into CIRP on 05.04.2018 and ordered into liquidation on 16.10.2018 after no viable Resolution Plan was received.

Findings & Observations

The Tribunal noted that the right to receive enhanced compensation for acquired industrial land constitutes an asset forming part of the Corporate Debtor's liquidation estate. The land measuring 22 Kanals and 8 Marlas bearing Khasra Nos. 53/24, 25 and 56/4 situated at Qadian was acquired by the State of Punjab for setting up a New Grain Market. The Award provided:

  • Enhanced compensation at Rs. 4,200/- per Marla (vs Collector's rate of Rs. 2,117/- per Marla)
  • 12% per annum increase on market value from date of notification under Section 4 of Land Acquisition Act till date of award or possession
  • Solatium at 30% on the enhanced amount
  • Interest at 9% per annum for first year and 15% per annum for subsequent period on enhanced amount
  • Payment directed to be made within four months (by March 2024)

The Tribunal referenced the NCLAT judgment in Slimline Realty Pvt. Ltd. v. Mr. Jigar Bhatt (2024) which held that prior approval under Section 33(5) proviso is mandatory and no notice to the opposite party is required.

Penalties / Settlements / Directions

The Tribunal granted approval to the Liquidator to initiate execution proceedings to enforce the Award dated 30.11.2023 passed in LAC Case No. 02 of 27.03.2019 (RBT No. 10 of 18.04.2019) titled Julka Rice & Oil Mills Pvt. Ltd. Vs. Punjab State & Ors.

Corrective Actions & Future Obligations

The Liquidator is authorized to institute appropriate execution proceedings before the competent court (Court of Additional District Judge, Gurdaspur) for recovery of the enhanced compensation amount with all statutory benefits.

Final Ruling & Enforcement

The application bearing IA.(IBC) 585(Ch)2026 in CP(IB) No. 38/Chd/Pb/2018 was allowed and disposed of. The Liquidator can now proceed with execution proceedings to realize the asset for the benefit of the Corporate Debtor's creditors.