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IN THE HIGH COURT OF ALLAHABAD
MAHESH CHANDRA TRIPATHI, PRASHANT KUMAR, JJ.
M/s Arena Superstructures Pvt Ltd And Another - Appellants
Versus
State of U.P. and Another - Respondents
WRIT - C No. - 8447 of 2024, Writ - C No. - 6041 of 2024
Decided on : 24-02-2025
| Table of Content |
|---|
| 1. background of the case and relevant facts. (Para 1 , 3 , 4 , 5 , 6 , 7 , 8 , 10 , 11 , 13 , 14 , 15 , 16 , 17 , 18) |
| 2. arguments presented by the petitioners. (Para 41 , 42 , 43 , 44 , 46 , 47 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 56 , 58) |
| 3. homebuyers' plight and arguments. (Para 60 , 61 , 62 , 63 , 64 , 66 , 67 , 68 , 69 , 70) |
| 4. arguments from noida authority. (Para 72 , 73 , 74 , 75 , 76 , 78 , 79 , 80 , 81) |
| 5. court's observations on facts and legal principles. (Para 124 , 125 , 126 , 128 , 129 , 130 , 132) |
| 6. legal conclusions drawn by the court. (Para 151 , 152 , 153 , 154 , 155 , 156 , 157 , 158) |
| 7. final conclusion and order. (Para 195 , 196) |
JUDGMENT :
TABLE OF CONTENTS
| S.N. | Heading | Page Nos. | Para Nos. |
| 1 | Factual Matrix of the Case | 03-08 | 03-19 |
| 2 | Insolvency Proceedings | 08-17 | 20-40 |
| 3 | Argument of the Petitioners (Writ-C No.6041 of 2024) | 18-22 | 41-59 |
| 4 | Argument of the Petitioners (Writ-C No.8447 of 2024) | 22-26 | 60-71 |
| 5 | Argument on behalf of Noida Authority | 27-36 | 72-101 |
| 6 | Insolvency Proceedings | 36-37 | 102-104 |
| 7 | Piercing of Corporate Veil | 37-40 | 105-116 |
| 8 | Non-Development of the Sports Facilities | 40-41 | 117-119 |
| 9 | Interest of Homebuyers | 41-41 | 120-120 |
| 10 | Notice for Payment of Instalments | 41-42 | 121-121 |
| 11 | Change in Shareholdings of Various Companies | 42-50 | 122-122 |
| 12 | Analysis | 50-50 | 123-124 |
| 13 | I-Pre-Insolvency Part | 50-53 | 125-128 |
| 14 | Criminal Complaint/Charge-Sheet | 53-54 | 129-132 |
| 15 | Piercing of Corporate Veil | 55-57 | 133-142 |
| 16 | Money Laundering | 57-61 | 143-150 |
| 17 | II-Post Insolvency | 61-63 | 151-158 |
| 18 | Fraud | 63-66 | 159-165 |
| 19 | Interest of the Homebuyers | 66-68 | 166-174 |
| 20 | High Court’s Interference | 68-70 | 175-183 |
| 21 | Conclusion | 71-71 | 183-183 |
| 22 | Effect on Consortium When a Member of the Consortium goes into the Insolvency | 71-75 | 184-196 |
1. Both the writ petitions have been clubbed and heard together as they involve similar issue, and hence, they are being decided by this common judgement and order.
2. Heard Sri Shashi Nandan, Senior Advocate assisted by Sri Ami Tandon, learned counsel for the petitioners, Sri Ritaj Vikram Singh, learned counsel for the petitioner in the connected petition (Writ-C No. 8447 of 2024), Sri Mohan Srivastava, learned Standing Counsel for the State- respondents and Sri Kaushalendra Nath Singh and Ms. Anjali Gokhlani, learned counsel for respondent-NOIDA.
FACTUAL MATRIX OF WRIT-C NO.6041 OF 2024
3. The instant writ petition has been preferred by the petitioners M/s Arena Superstructures Pvt. Ltd.[ASPL] and M/s Purvanchal Project Pvt. Ltd.[PPPL]through their authorised signatory.
4. Some time in the year 2010-2011, New Okhla Industrial Development Authority[NOIDA]conceived a Policy to develop Sports City in Sector Nos. 78, 79, 101 and 150 and thereafter, a scheme was floated and brochure was issued. In pursuance there of, applications were invited by the developers. A Consortium seems to have applied for the allotment of this land and the same was allotted to the Consortium of the Xanadu Estates Private Limited on 04.05.2011. Later, on the request of lead consortium members, NOIDA sub-divided the plots into six parts. Out of these six parts. The division was as follows:-
1). . SC-01/A Sector -79 M/s Sequel Buildcon Pvt. Ltd. - 1,00,000 Sq
2). . . SC-01/B Sector -79 M/s Sequel Buildcon Pvt. Ltd. - 48,000 Sqm.
3). SC-01/C Sector -79 M/s Three C green Developer – 2,50,027.5 sq mts.
4). SC-01/D Sector -79 M/s Kindle Developers Pvt. Ltd. - 1,00,000 Sqm.
5). SC-01/E Sector -79 M/s Xanadu Realcon Pvt. Ltd. - 80,000 Sqm.
6). SC-01 Sector -78 M/s Xanadu Infratech Pvt. Ltd. - 14,272.50 Sqm,
5. The Plot No. SC-01/A, Sector-79 was allotted to M/s Sequel Building Concept Pvt. Ltd. with an area of 1,00,000 square metres, where the promoters were Nirmal Singh, Vidur Bhardwaj and Surpreet Singh Suri and the shareholding of M/s Sequel Building Concept Pvt. Ltd. was 99.99% and 0.01% with Surpreet Singh Suri as nominee on behalf of M/s Three C Universal Developers Pvt. Ltd.
6. M/s Sequel Buildcon Pvt. Ltd. again asked the NOIDA to further sub-divide the plot into two parts of measuring 50,000 square metres each;
i) First plot of 50,000 sq m
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 that reverse CIRP cannot be used to evade liabilities, and the interests of homebuyers must be prioritized in insolvency proceedings.
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.
Resolution Plan – Inertia on part of GNIDA and its failure to protect interests of home/office space buyers, apart from its own interests, clearly disentitles it from levying penal interest/penal cha....
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'....
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