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IN THE HIGH COURT OF ALLAHABAD
Mahesh Chandra Tripathi, Prashant Kumar, JJ
Sequel Buildcon Private Limited – Appellant
Versus
State of U.P. – Respondent
JUDGMENT :
Prashant Kumar, J.
TABLE OF CONTENTS
| S.No. | HEADING | Page nos. |
| 1 | Facts of the case | 02-14 |
| 2 | Arguments on behalf of petitioner | 14-20 |
| 3 | Arguments on behalf of respondents | 21-28 |
| 4 | Insolvency proceeding | 28-29 |
| 5 | Reverse CIRP is not applicable & Piercing of Corporate Veil | 29-31 |
| 6 | Reverse piercing of Corporate Veil | 32-33 |
| 7 | Non-development of the sports facilities | 34 |
| 8 | Interest of Homebuyers | 34-35 |
| 9 | Notices for payment of instalments | 35 |
| 10 | Change in shareholding of various companies | 35-40 |
| 11 | Rejoinder arguments on behalf of the petitioner | 41-43 |
| 12 | Analysis by the Court | 43 |
| 13 | A. Scheme-2010-2011 for development of Sports City in NOIDA | 43-44 |
| 14 | B.Allotment to a Consortium & Sub-division | 44-47 |
| 15 | C. Insolvency | 47-48 |
| 16 | D. Reverse Insolvency | 48-50 |
| 17 | E. Lifting of Corporate Veil | 50-54 |
| 18 | F. Implementation of Prevention of Money Laundering Act | 54-55 |
| 19 | G. Fraud | 56-58 |
| 20 | H. Doctrine of Public Trust | 58-59 |
| 21 | I. Connivance | 59-62 |
| 22 | J. Interest of the Homebuyers | 62-64 |
| 23 | K. High Court’s interference | 66 |
| 24 | L. Conclusion | 66-67 |
| 25 | M. Effect on Consortium when a Member of the Consortium goes into insolvency | 68-69 |
1. Heard Sri Anil Tiwari, learned Senior Counsel assisted by Sri Shikhar Kaushal and Sri Anuj Chauhan, learned counsel for the petitioner, Sri M.C. Chaturvedi, lea
The court emphasized that reverse CIRP cannot be used to evade liabilities, and the interests of homebuyers must be prioritized in insolvency proceedings.
The court emphasized that insolvency proceedings should not be exploited to evade liabilities, confirming the necessity to protect homebuyers' interests and investigate corporate fraud.
The court emphasized the need to pierce the corporate veil to hold individuals accountable for fraud, asserting judicial authority to intervene in administrative decisions when public interest is com....
The court emphasized the need for accountability in public contracts, allowing judicial review to ensure fairness and public interest, while directing a CBI inquiry into irregularities in the Sports ....
A lead member of a consortium who opts out lacks locus standi to challenge the actions of the authority regarding project delays and cannot claim damages.
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'....
The court established that insolvency processes for real estate should be project-specific, protecting homebuyers and ensuring fair treatment of creditors.
The court affirmed that once debt and default are established under Section 7 of the IBC, admission into CIRP is mandatory, preventing misuse of the process as merely a recovery mechanism.
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