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NATIONAL COMPANY LAW TRIBUNAL
Shri Prabhat Kumar, Member (Technical), Shri Sushil Mahadeorao Kochey, Member (Judicial)
Asset Reconstruction Company (India) Limited – Appellant
Versus
Mr. Vikas Gopichand Khiyani, Resolution Professional – Respondent
C.P. (IB) NO. 281 OF 2024
The "moneywise" case addresses the issue of whether a creditor can enforce the same claim in multiple insolvency proceedings without proper reconciliation or adjustment. The core principle established is that a creditor cannot submit and secure admission of the same claim twice across different proceedings for the same underlying debt, as this would lead to unjust enrichment and undermine the integrity of the claims process.
The case emphasizes that allowing duplicate claims would be unfair to other stakeholders and could distort the distribution of assets. It also highlights the importance of procedural discipline in insolvency resolution, ensuring that claims are properly verified, adjusted, and not duplicated to prevent double recovery. The decision underscores that claims must be coordinated and reconciled to maintain fairness and finality in the resolution process.
Furthermore, the case notes that creditors must exercise due diligence to avoid submitting claims that could lead to double recovery. It also suggests that mechanisms should be in place for consolidating or reconciling claims in cases where multiple proceedings involve the same underlying debt, thereby upholding the principles of equitable distribution and procedural integrity.
In essence, the case reinforces the principle that a creditor's claim should be singular and properly adjusted across proceedings to prevent unjust enrichment and to ensure a fair and orderly resolution process.
ORDER
1. This Application IA 1302 of 2025 is filed in C.P. (IB) 281 (MB) 2024 by Asset Reconstruction Company (India) Limited, a Creditor, (“Applicant”) in the Corporate Insolvency Resolution Process (“CIRP”) of Xrbia Warai Developers Private Limited (“Corporate Debtor”) under Section 60 (5) of the Insolvency and Bankruptcy Code, 2016 (“Code”) read with Rule 11 of National Company Law Tribunal Rules, 2016 seeking following reliefs
a. That this Hon’ble Tribunal be pleased to allow the present application;
b. That this Hon’ble Tribunal be pleased to verify and admit the claim of the applicant to the tune of 751,04,73,570.00/- which was rejected vide email dated 12.11.2024 by the Respondent, as a Financial debt;
c. That in the light of the conduct of the Respondent herein, this Hon’ble Tribunal be pleased to remove and replace the present Resolution Professional, Mr. Vikas Khiyani, in light of the manner in which he has conducted the present CIRP of the Resolution Professional and appoint Mr. Birendra Kumar Agarwal as the Resolution Professional in the present matter or any other competent Resolution Professional this Tribunal may deem fit;
d. In the event that prayer(c) is not granted, this Hon’ble Tribunal be pleased to appoint an external auditor to assist the Resolution Professional for verifying claims of Creditors who shall verify the claims of each creditor who has filed their claims in the present Corporate Insolvency Resolution Process;
e. This Hon’ble Tribunal be pleased to direct the Respondent to provide detailed bifurcation of the claims of the homebuyers in the present CIRP providing details of the stage at which the homebuyer has filed the claim;
f. That this Hon’ble Tribunal be pleased to direct that no further CoC meetings be held in the present Corporate Insolvency Resolution Process until the present Interlocutory Application is decided and the voting share of the Applicant is revised accordingly;
g. Any such further Order (s) as this Hon'ble Tribunal may deem fit in the facts and circumstances of the present case.
2. The CIRP process commenced on 28th June, 2024 in the case of Corporate Debtor and the Respondent, Mr. Vikas Khiyani was appointed as the Interim Resolution Professional to carry on the CIRP process, and continuing as Interim Resolution Professional (“IRP/Respondent”).
3. The Applicant is an Asset Reconstruction Company (India) Ltd. incorporated under the Companies Act, 1956 and is registered as an Asset Reconstruction Company which carries on the business of asset reconstruction under Section 3 of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 .
Applicant’s Submissions
4. L&T Finance Limited, L&T Housing Finance Limited and L&T Infrastructure Finance Company Limited- all since merged with L&T Finance Limited, ("Original Lenders") had under various financing documents granted financial credit facilities ("Loan"/ "Financial Facilities") to the Xrbia Group to develop /housing in the form of residential townships backed by the securities detailed in the respective financing documents including mortgage of immovable properties, hypothecation of assets, pledge of shares, irrevocable guarantees furnished by the Mortgagors, Pledgors and Guarantors. On 29th March 2023, an Assignment Agreement was entered into between L&T Finance Limited and Asset Reconstruction Company (India) Limited (in its capacity as trustee of ARCIL-CPS-III-Trust) (" Arcil"), the Applicant herein. The entirety of Original Lender's rights, titles, and interests, inclusive of all associated benefits, pertaining to the extant financial facilities bestowed upon Xrbia Developers Limited and its group companies consisting of Xrbia Ambience Realty LLP, Xrbia Warai Developers Pvt. Ltd., Eiffel Lifespaces Pvt. Ltd., Xrbia Chakan Developers Pvt. Ltd. ("the Xrbia Group"), are stated to be irrevocably transferred to the Applicant.
5. On 8th October 2024, the Applicant submitted its claim under Form
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