Decree Sufficient for Rent Claim Under Section 14(1)(a) of IBC, 2016

The Hon’ble NCLT, Hyderabad Bench ruled that claims for arrears of rent are not covered under Section 14(1)(d) of the IBC but fall under Section 14(1)(a) of the Code.

The Applicant had issued a decree from a civil court in Suit No. 215 of 2021 dated June 21, 2022, favoring possession recovery and rent arrears. 

The Tribunal held that the civil decree suffices for making such rent claims. CIRP Regulation 31(b), concerning liquidation costs, does not apply.

The decision reinforces the distinction between operational debts and other claims in insolvency proceedings.