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DINESH MAHESHWARI, SANJAY KUMAR
Indiabulls Asset Reconstruction Company Limited – Appellant
Versus
Ram Kishore Arora – Respondent
JUDGMENT :
Civil Appeal No. 5941 of 2022 and Civil Appeal No. 1925 of 2023
1. These two appeals (Civil Appeal Nos. 5941 of 2022 and 1925 of 2023) filed by the Union Bank of India and Indiabulls Asset Reconstruction Company Ltd. respectively, being the financial creditors of the corporate debtor – Supertech Ltd., are directed against the order dated 10.06.2022 passed by the National Company Law Appellate Tribunal, Principal Bench, New Delhi, Hereinafter referred to as ‘the Appellate Tribunal’ or ‘NCLAT’, in Company Appeal (AT) (Ins.) No. 406 of 2022. By the order impugned, the Appellate Tribunal, while dealing with an appeal against the order dated 25.03.2022 passed by the National Company Law Tribunal, New Delhi – Court VI, Hereinafter referred to as ‘the Tribunal’ or ‘NCLT’, in admitting an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, Hereinafter referred to as ‘IBC’ or ‘the Code’, has issued a slew of directions which practically have the effect of converting the corporate insolvency resolution process, For short, ‘CIRP’, in question into a “project-wise insolvency resolution process” inasmuch as the constitution of committee of creditors, For short, ‘
CIRP initiated by homebuyers of one real estate project against developer must be confined to that project only, not extended corporate-wide, to protect other projects and stakeholders.
Corporate Insolvency Resolution Process (CIRP) – Settlement cannot be stifled before constitution of Committee of Creditors in anticipation of claims against Corporate Debtor from third persons – Wit....
The court established that insolvency processes for real estate should be project-specific, protecting homebuyers and ensuring fair treatment of creditors.
Settlements in corporate insolvency must involve the Committee of Creditors, ensuring collective engagement and consideration of all stakeholder rights.
The court ruled on the admissibility of insolvency claims, emphasizing that individual settlements should not infringe upon stakeholders' collective rights and must align with statutory regulations.
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