Extensions of time for insolvency resolution beyond statutory limits can be granted when stakeholder interests justify such measures, reaffirming the primary aim of resolution over liquidation.

JUDGMENT

(Hybrid Mode)

Justice Sharad Kumar Sharma, Member (Judicial):

These are four Company Appeals Viz. Comp. App (AT) (CH) (INS) No.192 / 2023, Comp. App (AT) (CH) (INS) No.214 / 2023, Comp. App (AT) (CH) (INS) No.215 / 2023 & Comp. App (AT) (CH) (INS) No.212 / 2023, which have been respectively preferred by the Appellants, being aggrieved, against the respective Judgments, passed by the `Adjudicating Authority’, thereby rejecting their Application, as preferred under Section 12 of I & B Code, 2016, for extension of time for the purposes of completion of the Insolvency Resolution Process.

2. As the facts in each of the cases are identical, for the purpose of brevity all the Appeals are being taken up together, in order to aptly deal with the facts as respectively argued by the respective Counsels for the Parties, it becomes inevitable for the `Tribunal’ to deal with the facts of each Company Appeals independently and precisely.

Comp. App (AT) (CH) (INS) No. 192 / 2023:

3. As far as the Comp. App (AT) (CH) (INS) No. 192 / 2023 of Sharon Hills Residents Association v. K. Parameswaran Nair, Resolution Professional is concerned, the challenge given by the Appellant herein is to the Impugned Order, dated 26.04.2023, as it was passed in IA(IBC)/157/KOB/2023 in CP(IBC)/5/KOB/2021, by virtue of the Impugned Order, the Application preferred by the Appellant for extension of time to complete `CIRP’ proceedings, had been rejected.

4. The facts as stated by the Appellant in the instant Company Appeal are that the Corporate Debtor through an Advertisement, had invited the Prospective Applicants, i.e., the Home Buyers, for the purchase of apartments along with the undivided share in Sharon Hills Phase I project at Thiruvananthapuram.

5. It is contended by the Appellant that being allured by the Advertisement, that the 12 Home Buyers, had entered into Sale and Construction Agreement with the Corporate Debtor, for the purchase of apartment, along with the undivided share to an extent of 18.856 cents of land in Survey No.333/1-1 and 333/2-1 at Vattappara Village of Sharon Hills Phase I Project at Thiruvananthapuram.

6. It was further contended by the Home Buyers that by February 2015, they have paid the entire sale consideration, towards their respective residential apartments, proposed to be purchased by them and the undivided share over the land of the Corporate Debtor.

7. It is the case of the Appellant that in pursuance to the aforesaid transaction, the Corporate Debtor, had handed over the possession of the residential apartment and ever since then, the respective Home Buyers, are in exclusive possession and enjoyment of the respective apartments, for the past more than 7 years.

8. However, with an ulterior motive, the Corporate Debtor, had failed to execute the Registered Sale Deed, within the agreed time, with regard to the residential apartment and the undivided share over the land as promised, within the time period, as referred in the Deed, in relation to the said Project.

9. It has later came to the Notice of the Home Buyers that the Corporate Debtor during the period 2013 to 2016, had availed various Loan facilities from the Financial Creditors by fraudulent means, and by pledging few of the residential apartment over the Project land which were already sold to the Home Buyers. The Corporate Debtor is shown to have availed the Loan facility from Kerala Financial Corporation for a sum of Rs.15 Crores, by pledging the sold apartments of the Sharon Hills Phase I Project land and Nova Castle Project land.

10. In relation to the aforesaid two financial assistance drawn by the Corporate Debtor, he had pledged and created a Collateral Security for the said Loan transaction qua the sold apartments already sold to Home Buyers without their knowledge. The Home Buyers observed that there was a flaw in extension of the financial assistance by the Financial Creditors for the reason, the same was without properly verifying the credentials of the Corpor