WHISPERING TOWERS FLAT OWNERS WELFARE ASSOCIATION vs MR. ABHAY NARAYAN MANUDHANE RP & ORS

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2022 Supreme(Online)(NCLAT) 6049

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI Company Appeal (AT) (Insolvency) No. 896 of 2021 (Arising out of Order dated 29.09.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Court-III in I.A. 2118/2021 in C.P.(IB)-27(MB)/2019) IN THE MATTER OF: Whispering Tower Flat Owner Welfare Association B-704, Runwal Pride CHSL, Behind R Mall, LBS Marg, Mulund (W), Mumbai-400080, Through Dr. Haresh Manglani R/o 604, Mulund Devi CHSL, BP Singh Road, Mulund-West, Mumbai – 400080.
.... Appellant Vs
1. Abhay Narayan Manudhane, Resolution Professional of the Corporate Debtor 1204, Marker Chamber V, Jamnalal Bajaj Road, Nariman Point, Mumbai – 400021.

2. Bank of India, Through the Chief General Manager, Star House, C-5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051.

3. Housing Development and Infrastructure Limited (HDIL) Through the Resolution Professional Wadhawan House, Plot No.32/A, Union Park Road No.5, Bandra (West), Mumbai-400050.
.... Respondents Present: For Appellant: Mr. Soumya Roop Sanyal, Ms. Heena Gopal Rohra, Advocates. For Respondents: Mr. Shahdab Jan, Ms. Prerna Wagh, Ms. Meghna Rao, Advocates for R-1 (RP). Mr. Nishith Dhruva, Ms. Pratiksha Agarwal, Mr. Prakash Shinde, Mr. SM Algaus, Ms. Sneha Botwe and Mr. Kaushal Parsekar, Advocates for R-2. With Company Appeal (AT) (Insolvency) No. 980 of 2021 (Arising out of Order dated 29.09.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Court-III in I.A. 2118/2021 in C.P.(IB)-27(MB)/2019) IN THE MATTER OF:
1. Majestic Towers Flat Owners Association Through its President Mr. Chandrakishore Kolindewala, P3/13 Deep Sadan CHS Ltd., Sundernagar SV Road, Malad (West), Mumbai-400064.

2. Galaxy Apartment F Wing Welfare Association Through its President Mr. Sanjay Chandrakant Kangne C/o Satish Adsul, Shop No.3, Building No.28, Viswadarshan CHS, Nehru Nagar, Mumbai – 400024.
.... Appellants Vs
1. Housing Development and Infrastructure Limited (HDIL) Through its Resolution Professional Abhay Narayan Manudhane, 201, Shubh Ashish, 129, Model town, Andheri (West), Mumbai, Maharashtra – 400053.

2. Bank of India, Through its Assistant General Manager, Star House, C-5, “G” Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051.

3. Rakesh Wadhawan, Shareholder, HDIL, Wadhawan House, 32/A, Golf Links, Union Park, Bandra (West), Mumbai 400052.
.... Respondents Present: For Appellants: Mr. Sunil Fernandes, Mr. Darpan Sachdeva, Mr. Shubham Sharma, Advocates. For Respondents: Mr. Shahdab Jan, Ms. Prerna Wagh, Ms. Meghna Rao, Advocates for R-1 (RP). Mr. Nishith Dhruva, Ms. Pratiksha Agarwal, Mr. Prakash Shinde, Mr. SM Algaus, Ms. Sneha Botwe and Mr. Kaushal Parsekar, Advocates for R-2. With Company Appeal (AT) (Insolvency) No. 1045 of 2021 (Arising out of Order dated 29.09.2021 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Court-III in I.A. 2118/2021 in C.P.(IB)-27(MB)/2019) IN THE MATTER OF: Sarang Kumar Wadhawan Presently in judicial custody At Mumbai Central Prison, Mumbai .... Appellant Vs Abhay Narayan Manudhane Resolution Professional of Housing Development and Infrastructure Limited, 1204/1221, Maker Chamber V, Jamnalal Bajaj Road, Nariman Point, Mumbai – 400021.
.... Respondent Present: For Appellants: Ms. Disha Shah and Mr. Subir Kumar, Advocates. For Respondents: Mr. Shahdab Jan, Ms. Prerna Wagh, Ms. Meghna Rao, Advocates for R-1 (RP).

JUDGEMENT

ASHOK BHUSHAN, J. These three Appeals have been filed against same judgment dated 29.09.2021 passed by the National Company Law Tribunal, Mumbai Bench, rejecting the I.A. No.2118 of 2021 filed by the Resolution Professional seeking extension of Corporate Insolvency Resolution Process (CIRP).

2. The Appellant in Company Appeal (AT) (Insolvency) No. 896 of 2021 is an Association formed by the Homebuyers of the flats proposed to be constructed and delivered by the Corporate Debtor of a Project titled “Whispering Towers” located at Village Nahur, Taluka Kurla. In the aforesaid project almost 1500 flats were to be constructed.

3. In Company Appeal (AT) (Insolvency) No. 980 of 2021, there are two Appellants. Appellant No.1 - Majestic Towers Flat Owners Association is an Association of 290 allottees, who purchased flats in the project known as “Majestic Towers” at Bandra, Mumbai. Appellant No.2-Galaxy Apartment is an Association of Homebuyers comprising 96 allottees of ‘F Wing’ of the Project – “Galaxy Apartments” situated at Kurla, Mumbai.

4. Company Appeal (AT) (Insolvency) No. 1045 of 2021 has been filed by the Appellant, Ex-Promoter/ Director of the Corporate Debtor – Housing Development & Infrastructure Limited.

5. All the Appellants are aggrieved by the rejection of Application No.2118 of 2020 filed by Resolution Professional before the Adjudicating Authority for extension of CIRP period. There being common question of facts and law, all the Appeals are heard together and are being decided by this common judgment.

6. On an Application filed by M/s Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred as the ‘IB Code’), the Corporate Insolvency Resolution Process was initiated by an order dated 20th August, 2019 passed by the Adjudicating Authority against the Corporate Debtor namely - M/s Housing Development & Infrastructure Ltd. The Corporate Debtor a Real Estate Company started several multi- storied Housing Project. The Company pursuant to grant of license by various statutory Authorities launched several Housing Projects. After admission of the Application under Section 7 on 29th August, 2019, Interim Resolution Professional was appointed, who was also approved as Resolution Professional by the Committee of Creditors (CoC). After issuance of Form-G by Resolution Professional, the CIRP proceeded for substantially longer period, but no Resolution Plan could be received by the Resolution Professional.

On representation submitted by various Homebuyers’ Association of various projects, requesting the Resolution Professional to undertake Project Wise Resolution, the Resolution Professional included the same in Agenda, but the same could not be earlier considered favourably by the Committee of Creditors. The CoC in its 18th Meeting held on 08.09.2021 approved the Resolution, decided to consider re-run of the CIRP and explore the possibility of Project wise Resolution and put the same for e-voting. The CoC approved division of the assets of the Corporate Debtor into eight Project for the purpose of exploring possibility of partial/ piecemeal resolution. Resolution Professional was authorized to explore the possibility of re-run the process by inviting Expression of Interest for entire Company as a going concern with an option to submit Resolution Plan for one or more Project individually or jointly with other Projects. Resolution Professional was authorized to take necessary action in the above regard.

7. After CoC’s decision dated 08.09.2021, the Resolution Professional filed an I.A. No.2118 of 2021 wherein, after narrating the sequence of event, prayed for extension of CIRP period. In the Application, it was mentioned by the Resolution Professional that the CIRP period was to come to an end till 15th September, 2021 and was extendable till 30th September, 2021.

The details of eight Projects were also mentioned in the Application for which Project wise Resolutio

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