The NCLAT has upheld a civil court decree affirming a buyer's possession of properties, limiting the NCLT's jurisdiction in such disputes.
Civil Court Decree Upholds Buyer's Possession of Properties
The National Company Law Appellate Tribunal (NCLAT) has upheld a civil court decree asserting a buyer's right to possess properties located in Nalagarh and Baddi. This decision comes amid ongoing challenges regarding the fraudulent nature of real estate transactions, which remain to be adjudicated by the NCLT under Section 66 of the IBC.
The NCLAT concluded that the NCLT exceeded its jurisdiction by intervening in property possession matters that were already determined by a civil court. This ruling underscores the delineation of authority between civil and company law jurisdictions in disputes over property.
Legal representatives engaged in real estate and corporate disputes should take note of this development, as it clarifies jurisdictional boundaries and the applicability of civil law decrees in property disputes involving corporate entities.
Citations
- NCLAT Decree (2026)
