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2026 Supreme(Online)(NCLT) 468

NATIONAL COMPANY LAW TRIBUNAL
Labh Singh, Judicial Member, Rekha Kantilal Shah, Technical Member
Shristi Infrastructure Development Corporation Limited – Appellant
Versus
M/s Sarga Hotel Private Limited – Respondent
C.P. (IB) No. 302/KB/2021 | IVN. (IB) No. 1/KB/2025 | I.A. No. 2481 of 2024



Advocates:
For SIDCL: Mr. Saurav Jain, Adv., Mr. Shaunak Mitra, Adv.
For SRA: Mr. Joy Saha, Sr. Adv., Mr. D.N. Sharma, Adv., Mr. Sidhartha Sharma, Adv., Mr. Rishav Dutt, Adv., Mr. Arjun Asthana, Adv., Mr. Aman Kataruka, Adv.

Landowner lacks locus to block corporate debtor's new electricity connection post-resolution plan; treated as basic amenity for lawful occupation, independent of landlord consent or disputes.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 30(2), 31, 60(5); National Company Law Tribunal Rules, 2016 - Rule 11 - Corporate Insolvency Resolution Process - Intervention application by landowner in application seeking new electricity connection post resolution plan approval - Tribunal held landowner lacks locus standi to intervene as electricity is basic amenity tied to lawful occupation, not requiring landlord consent; electricity authorities to assess occupation and statutory compliance, not landlord veto; post-resolution plan approval under Section 31, Adjudicating Authority functus officio on settled matters; interventions must show direct prejudice to vested rights, not bad faith litigation or multi-forum obstruction. (Paras 5.4, 5.5, 5.7, 5.9)

(B) Electricity supply - Fresh connection - Courts treat as basic amenity for lawful occupants fulfilling commercial/statutory requirements; utilities not bargaining chips in private landlord-tenant disputes; landowner cannot block connection citing past dues or shared utilities. (Para 5.4)

(C) Resolution Plan - Implementation - Approval does not fetter parties' rights to settle shared utilities in competent court; NCLAT liberty to renegotiate does not revive settled reliefs before Tribunal; serial litigation post-approval undermines commercial resolutions. (Para 5.3)

Facts of the case:
Intervention application by landowner in proceedings where corporate debtor sought new electricity connection and relief from outstanding dues post resolution plan approval. Landowner claimed lease terms bar unilateral changes, prior Tribunal denial of similar relief, and ongoing disputes over shared utilities on adjacent land. Respondents countered landowner lost stake post-plan approval, intervention mala fide to extract payments for entire premises electricity, citing history of obstructive litigations.

Findings of Court:
Landowner lacks locus as no direct prejudice; electricity entitlement tied to occupation, not landlord consent; intervention reflects bad faith serial litigation; Tribunal functus officio post Section 31 approval.

Issues: Whether landowner has locus to intervene against new electricity connection application; validity of post-resolution plan plea as indirect review; impact of NCLAT liberty on shared utilities.

Ratio Decidendi: Landowner cannot veto electricity connection for lawful occupant; Tribunal rejects interventions lacking direct vested rights prejudice, safeguarding resolutions from sabotage; utilities independent of private disputes.

Result: Intervention application dismissed for want of locus.

Table of Content
1. intervention application seeks to oppose electricity connection relief. (Para 1 , 2)
2. intervenor lacks locus post-resolution plan approval. (Para 3)
3. landlord rights preserved; ia 2481 is impermissible review attempt. (Para 4)
4. nclat upholds resolution plan with liberty for utility disputes. (Para 5)

Per: Rekha Kantilal Shah, Member (Technical)

1. IVN. (IB) No. 1/KB/2025

1.1 This application is filed by the applicant claiming following reliefs-:

a. Allow the Intervenor namely Shristi Infrastructure Development Corporation Limited (SIDCL) to intervene in the present Application being I.A. No. 2481 of 2024 filed by Sarga Hotel Private Limited & Another and make arguments;

and / or b. Reject I.A No. 2481 of 2024 filed by Sarga Hotel Private Limited & Another with exemplary cost, as an unlawful attempt circumvent judicial orders; and to c. Pass such other and further order(s) and/or direction(s) as this Court may deem fit and proper, in the facts and circumstances of the present case and in the interest of justice.

2. Facts of the case-:

2.1 The Intervenor herein namely Shristi Infrastructure Development Corporation Limited ("Intervenor") being the Landowner of 8 Acre of Land located in Plot No. CBD/2, Premises No. 53-1111 in in C.P. (IB) No. 302/KB/2021 Action Area- II in Street No. M.A.R., situated in New Town, Kolkata is filing the present Intervention Application in I.A. No. 2481 of 2024, pending adjudication before this Court wherein to the limited understanding of the Intervenor, the Applicant i.e. Sarga Hotel Private Limited ("Applicant") seeks a new electricity connection for the Hotel located on 3.5 Acre Land, being a part of the Intervenor's Land. The Applicant further seeks certain relief to the extent of an obligation of Sarga Hotel Private Limited of 1.97 Crore towards outstanding electricity dues for new connection. The Intervenor's limited understanding of the aforesaid Application is based on the judicial orders and oral submissions made by the Applicant during course of the hearings on the said I.A.

2.2 That the present application is well within the law of limitation as the CIRP against the corporate debtor is going on. The present application is within the jurisdiction of this NCLT Kolkata Bench as the registered office of then corporate debtor is situated within the state of west Bengal.

2.3 Brief facts warranting intervention of the Intervenor are enumerated hereunder:

i. the Intervenor had leased a land admeasuring 3.5. Acres at Plot No. CBD/2, Premises No. 53-1111 in Action Area-

in C.P. (IB) No. 302/KB/2021 II in Street No. M.A.R., situated in New Town, Kolkata in 2007 to Sarga Hotel Private Limited, when Sarga Hotel Private Limited was a wholly owned subsidiary of the Intervenor.

ii. The leased land enabled Sarga Hotel Private Limited to build a 5 Star Luxury Hotel, that today is known as Hotel Westin. That as is a matter of record, the Intervenor in order to enable the Hotel to be run smoothly, let Sarga Hotel Private Limited set up equipment on different portions of land, belonging to the Intervenor. These equipment and utilities came to be termed as shared services and utilities.

iii. Broadly, these utilities and equipment are placed in the basement of Residential Building being Tower -2, exclusive of the 3.5 acre land leased to Sarga Hotel Private Limited as well as on a portion of land exclusive of the Leased Land. Herein, it is pertinent to emphasis that this arrangement came to be recorded between the parties as Sarga Hotel Private Limited was the wholly owned subsidiary of the applicant.

iv. That vide Order dated 4th January 2024 passed by this Court, the Resolution Plan of the Respondent No. 2 was in C.P. (IB) No. 302/KB/2021 approved by this Tribunal. However, on perusal of the Order dated 4th January 2024 it is abundantly clear that as a part of the concessions and reliefs, the Respondent No. 2 had duly sought a relief and concession to the extent of "The Corporate Debtor would be entitl

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