NATIONAL COMPANY LAW TRIBUNAL COURT ROOM NO. 1, MUMBAI BENCH Item No. 39 IA 5114/2024 in C.P. (IB)/3714(MB)2019 CORAM:

SH. PRABHAT KUMAR JUSTICE VIRENDRASINGH BISHT (Retd.) HON’BLE MEMBER (TECHNICAL) HON’BLE MEMBER (JUDICIAL)

ORDER SHEET OF THE HEARING ON 28.03.2025 NAME OF THE PARTIES: JM FINANCIAL ASSET RECONSTRUCTION COMPANY LIMITED V/s TURNING POINT ESTATES PRIVATE LIMITED Section 7 and 60(5) of Insolvency and Bankruptcy Code, 2016 ________________________________________________________________

ORDER

IA 5114/2024 in C.P. (IB)/3714(MB)2019

1. Learned Counsel, Disha Shah appeared for the Applicant and learned Counsel, Rohit Gupta a/w Prakhar Tandon and Agam H Maloo i/b Deep Bisht appeared for the Respondent.

2. This Application has been filed by the Xylocopa Builders & Developers Private Limited under section 60(5) of Insolvency and Bankruptcy Code, 2016 seeking following prayers;

i. That this Tribunal be pleased to set aside the Impugned Email dated 14.09.2024 and Impugned Letter dated 26.09.2024 issued by the Respondent;

ii. That this Hon’ble Tribunal be pleased to set aside Notice of Sale dated 17.10.2024 issued by the Respondent for auction of the said Property on 20.11.2024;

iii. This Tribunal during the pendency of the present application, be pleased to restrain the Respondent and /or its agents, representatives and/or any person acting through the Respondent from taking any coercive steps in furtherance of the Impugned Email and Impugned Letter;

iv. That this Tribunal during the pendency of the present application, be pleased to restrain the Respondent and /or its agents, representatives and/or any person acting through the Respondent from taking any coercive steps in furtherance of the Notice of Sale dated 17.10.2024;

v. That this Tribunal during the pendency of the present application, be pleased to stay the operation of the Impugned Email, Impugned Letter and the Notice of Sale dated 17.10.2024;

vi. For interim and ad-interim reliefs in terms of prayer clause (c) to (e); and vii. For such other and further reliefs, as this Hon’ble Tribunal may deem fit, proper and necessary in the circumstances of the present case.

3. The Corporate Debtor was admitted under CIRP vide Order dated

10.01.2020. Thereafter, vide Order dated 09.02.2023, the Corporate Debtor was ordered to be Liquidated under Section 33(1) of IBC and the Respondent was appointed as Liquidator of the Corporate Debtor. In the 9^th auction conducted for the Property, subject matter of this application, of the Corporate Debtor, the Applicant participated with a bid of Rs.81 crore and was declared as highest bidder and also deposited EMD of Rs.4.05 crore. Thereafter on 09.05.2024, the Applicant deposited the balance 25% amount, therefore total amount deposited is Rs.20.25 crore as on date. After deposit of EMD, the Respondent provided title deeds of the said Property on 19.04.2024.

4. Simultaneously, the Applicant is stated to have applied for loan for payment of the balance bid amount. During June 2024, the title search revealed that the charge/encumbrance of the Tax Department for Rs.4.60 crore was seen in the revenue records of the said Property and the same was also sighted by the Advocates of the Bank, where loan was applied by the Applicant, who had suggested to get the same removed before sanction of loan. Immediately, the Applicant sought clarification on the same from the Respondent, when the Respondent, is stated to have assured that the Respondent would take steps for removal of the charge/encumbrance of the Department and requested the Applicant to make payment of the balance bid amount. As the time for deposit of the balance bid amount was nearing, the Applicant being interested in the said Property sought extension of time for payment of the balance bid amount, which was extended till August 2024. In the meantime, the Applicant also was liaising with its Bank for sanction of loan for payment of the balance bid amount. However, as the charge/encumbrance of Ex