The court upheld the initiation of insolvency proceedings against two linked corporate debtors, affirming that the required threshold of financial creditors was satisfied at the time of the petition's filing.

JUDGMENT :

SANJAY KUMAR, J

1. By order dated 04.12.2023 passed in Company Petition IB (IBC) No. 646/PB/2021, the National Company Law Tribunal, Court – V, New Delhi Bench¹[For short, ‘the NCLT’] , initiated corporate insolvency resolution process under Section 7 of the Insolvency and Bankruptcy Code, 2016²[For short, ‘the Code’], against M/s. Grand Venezia Commercial Towers Private Limited³[For short, ‘Grand Venezia Ltd.’] and M/s. Bhasin Infotech and Infrastructure Private Limited⁴[For short, ‘Bhasin Ltd.’] . Assailing the said order, Company Appeal (AT)(INS) Nos.1593 and 1594 of 2023 came to be filed before the National Company Law Appellate Tribunal, Principal Bench, New Delhi ⁵ [ For short, ‘the NCLAT’]. Ashok Kumar, the appellant in Company Appeal (AT)(INS) No.1593 of 2023, is an erstwhile Director of Grand Venezia Ltd., while Satinder Singh Bhasin, the appellant in Company Appeal (AT)(INS) No.1594 of 2023, is an erstwhile Director of Bhasin Ltd. On 07.12.2023, the NCLAT took note of the appellants’ claim that the constructions were complete and the units were ready to occupy and directed that no further steps should be taken pursuant to the order admitting the company petition. The appellants were also directed not to create third party interests in respect of the respondents’ units. However, by common judgment dated 29.10.2025, the NCLAT dismissed both the appeals. Civil Appeal Nos. 13779 and 13812 of 2025 were filed by the appellants therein against the said judgment.

2. Notably, during the pendency of the proceedings before the NCLAT, Satinder Singh Bhasin filed I.A. No. 5936 of 2025 in his appeal seeking permission to deposit Rs.15,62,00,000/- to prove his bonafides. This I.A. was filed after judgment was reserved in the appeals. By order dated 07.10.2025, the NCLAT rejected his application. Aggrieved, Satinder Singh Bhasin filed Civil Appeal No. 13628 of 2025.

3. Though Civil Appeal No. 13628 of 2025 filed by Satinder Singh Bhasin was earlier in point of time, the substantial appeals are the later ones, i.e., Civil Appeal Nos. 13779 and 13812 of 2025, and we propose to deal with them in the first instance.

4. Company Petition IB (IBC) No. 646/PB/2021 was filed by 141 individuals against Grand Venezia Ltd. and Bhasin Ltd., the corporate debtors, seeking initiation of corporate insolvency resolution process against them under Section 7 of the Code. They claimed to be financial creditors, being allottees in the commercial complex, named ‘Grand Venezia Commercial Tower’, which formed part of a composite and integrated real estate project launched by Bhasin Ltd. in the year 2005. This project comprised three sections, namely, a luxury five-star hotel, including integrated office spaces; a mall having food courts, gaming zones, gondola rides, etc.; and a cineplex for screening of movies. The petitioners in the company petition were allottees of office spaces. The land on which this project was to be erected was leased to Bhasin Ltd. by the Uttar Pradesh State Industrial Development Authority ⁶ [ For short, ‘the UPSIDA’] (formerly, Uttar Pradesh State Industrial Development Corporation). The possession of the units was to be delivered to the allottees by May, 2013.

5. The complaint of the petitioners before the NCLT was that the units allotted to them were not made ready and were unfit for occupation. They asserted that there was no completion certificate provided by the UPSIDA in relation to their portion of the project and that the part-completion certificate whi