The court ruled that allegations of fraud in the initiation of CIRP warrant a thorough examination, affirming an Appellant's locus as a home-buyer in related matters.

JUDGMENT

ASHOK BHUSHAN, J.

1. This Appeal has been filed challenging the Order dated 01.09.2023 passed by National Company Law Tribunal, New Delhi, Special Bench, Cont’d…/Court-II (hereinafter referred to as “The Adjudicating Authority”) in I.A. No. 4654 of 2023 in CP(IB) No. 662/ND/2021. By the Impugned, Order, Intervention Application filed by the Appellant praying for certain reliefs have been rejected.

2. Appellant aggrieved by the said order has come up in this Appeal.

3. Brief facts necessary for deciding this Appeal are:-

I. The Appellant in this Appeal is a home-buyer having allotted residential apartment in the Group Housing Project ‘Lotus Panache’ of Granite Gate Properties Private Limited (GGPPL in short). Allotment Letter was issued on 01.12.2011 by GGPPL.

II. A ‘Corporate Insolvency Resolution Process’ commenced against a group company namely M/s Vistar Construction Private Limited by Order dated 05.08.2022 in an application filed by the Pragati Impex India Private Limited. The ex-director of the Corporate Debtor challenged the Order of CIRP which order was upheld by this Tribunal by Judgment and Order dated 06^th January, 2023 in C.A.(AT) Ins. No. 1431 of 2022.

III. Appellant claiming to be home-buyer in a sister company of the Corporate Debtor filed an application being I.A. No. 4654 of 2023 praying for following reliefs:

“a. Pass an order allowing the Applicant to intervene in the captioned matter i.e. C.P. (IB) 662 of 2022;

b. Pass an order to take on record and consider the facts and documents mentioned by the present Application, while adjudicating over the captioned matter i.e. C.P. (IB) 662 of 2022 and I.A. bearing number 3636 of 2023 filed in the captioned matter;

c. Pass an order dismissing the captioned matter i.e. C.P. (IB) 662 of 2022 and I.A. bearing number 3636 of 2023, filed in the captioned matter;

d. Pass an order imposing heavy penalty, under Section 65 of the Code, upon the Financial Creditor and the Corporate Debtor;

e. Pass an order directing the Insolvency and Bankruptcy Board of India, to conduct an enquiry, regarding the ex-facie collusion between the Ld. RP and the Financial Creditor, the Corporate Debtor and the SRA;

f. Pass an order directing a detailed inquiry by an appropriate investigating agency of the Government of India Such as Enforcement Directorate, SFIO into the affairs of Financial Creditor and the Corporate Debtor g. Pass any other order, as this Hon’ble Tribunal may deem fit, in the light of the facts and circumstances of the present case, in the interest of transparency, equity and justice.”

IV. The Appellant in the Application has made serious allegations of collusion and fraud against the Financial Creditor and the Corporate Debtor. It was pleaded that there is no genuine debt and initiation of CIRP by the Financial Creditor was mala fide and fraudulent. Appellant in his application has stated that alleged debt was transferred in circular manner back to one of the group company of the Financial Creditor on the same day. It was pleaded that there was complex round tripping by Financial Creditor amounting to Rs. 1,75,81,442/-. The Adjudicating Authority was pleaded to dismiss the Company Petition and penalty under Section 65 of the Code was also prayed to be imposed. The Application was opposed by the Learned Counsel appearing for the Resolution Professional. The Adjudicating Authority observed that Appellant has no transaction with the Corporate Debtor and he has no locus to oppose the order admitting the CP(IB) No. 662/ND/2021 when the Order admitting CIRP was affirmed by the Appellate Tribunal, the Application was rejected with these observa