Land Record Mutation During Moratorium Not Permissible: NCLT Mumbai In Kaved Realty Case

The National Company Law Tribunal (NCLT)at Mumbai has held, in a case concerning Kaved Realty Private Limited, that mutation of land records giving effect to a revenue order cannot be carried out after commencement of insolvency proceedings, as such action violates the moratorium under the Insolvency Code.

A bench of Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, while allowing an application filed by the Resolution Professional of Kaved Realty Private Limited, observed,

“In this case CIRP commenced on 23.10.2024. The office of Respondent No.3 has made out mutation entries in the Land Revenue Records pursuant to order dated 14.10.2024 passed by Hon'ble Minister (Revenue), State of Maharashtra. The Respondent No.3 has made such mutation entries on 26.03.2025. Section 14 of the Insolvency and Bankruptcy Code bars the prohibits institution of proceedings against the Corporate Debtor including execution of any judgment or order by any authority"

The corporate insolvency resolution process of Kaved Realty Private Limited commenced on October 23, 2024, following the admission of a CIRP plea filed by Unity Small Finance Bank Limited. Upon admission, a moratorium under Section 14 came into force. Despite this, the Sub-Divisional Officer deleted the corporate debtor's name from the 7/12 land extract by recording a Mutation Entry on March 26, 2025, on the basis of the ministerial order.

The Resolution Professional contended that the mutation was carried out during the subsistence of the moratorium and was therefore impermissible. It was submitted that deletion of the corporate debtor's name from land records adversely affected the ongoing CIRP, including valuation of assets and assessment by prospective resolution applicants.

The NCLT held that the moratorium under Section 14 not only bars the institution of proceedings against the corporate debtor but also prohibits the execution or implementation of any judgment or order by any authority after the commencement of CIRP.

The bench observed that the revenue authorities “ought not to have given effect to the order dated 14.10.2024 in their records after commencement of moratorium on 23.10.2024.”

The tribunal accordingly directed the authorities to refrain from continuing the mutation during the moratorium period and allowed the application.