M/S Religare Housing Development ... vs La Residentia Developers Pvt. Ltd

NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI Comp. App. (AT) (Ins) No. 1082 of 2023 & I.A. No. 678 of 2024 IN THE MATTER OF: Religare Housing Development Finance ...Appellants Corporation Ltd. & Anr. Versus LA Residentia Developers Pvt. Ltd. ...Respondents

Present: For Appellant : Mr. Santosh Paul Sr. Advocate with Mr. Janender Kumar Chumbak, Ms. Radhika, Mr. Rohan Chaudhary Advocates. For Respondents : Mr. C.S. Gupta, Advocate for Corporate Debtor. Mr. Tarang Agarwal, Advocate for Intervener.

ORDER

(Hybrid Mode)

20.12.2024: Heard counsel for the appellant, Ld. Counsel appearing for

the respondent and Ld. Counsel appearing for the intervener.

2. This appeal has been filed by Financial Creditor challenging the order

dated 26.05.2023 passed by National Company Law Tribunal, New Delhi,

Court-2 in CP(IB) No. 84/ND/2023 as well as in IA- 2519/2023.

3. Brief facts necessary for deciding this appeal are that a Section 9

application was filed against the Corporate Debtor by the Single Pipes Private

Limited on which Company Petition (IB) No. 188/ND/2020 was registered,

which Section 9 application was admitted by Adjudicating Authority by order

dated 25.05.2022 against which order an appeal was filed being CA (AT)(Ins)

No. 704 of 2022 by Amrapali La Residentia Flat Buyers Association. The appeal

was allowed and order admitting Section 9 application was set aside. This appellate Tribunal has set aside the order dated 25.05.2022. In the said appeal

an IA was filed by the present Financial Creditor on which IA following

observations were made by this Tribunal in para-23:-

"23. In so far as two I.A.s filed by the Financial Creditors as noted above, we are of the view that it is always open to the Financial Creditor to take recourse to law as permissible to them for protecting their interest. At the instance of the Financial Creditors we are not inclined to permit the CIRP Process to go on in the facts of the present case as noted above."

It appears that subsequent the order of this Tribunal CP (IB) No.

84/2022 was filed by Financial Creditor seeking/ praying for initiation of CIRP

against the corporate debtor on ground of debt and default as claimed in part-4

of the application total debt amount claimed was Rs.28,96,90,167/-. In the

Section 7 application an IA- 2519/2023 was filed by RWA of LA Residentia

Developers Private Limited, which application was heard by the Adjudicating

Authority and while considering the said application Adjudicating Authority

noticed the order of this Tribunal dated 25.07.2022 and has rejected the

Section 7 application filed by the financial creditor being CP (IB)No.

84/ND/2023.

4. Ld. Counsel for the appellant submits that the order passed by this

Tribunal dated 25.07.2022 arose out of proceeding under Section 9 initiation

by Single Pipes and the judgment of this Tribunal was not relevant for deciding

Section 7 application and the order impugned there is no other reason given

except referring to the order of this Tribunal dated 25.07.2022. Ld. Counsel for

the corporate debtor sought to defend the order relying on para-16 of the

Comp. App. (AT) (Ins) No. 1082 of 2023 & I.A. No. 678 of 2024 2 of 3 judgment of this Tribunal dated 25.07.2022 and the order of Supreme Court

referred in to the order of this Tribunal.

5. We have considered the submissions of the parties and perused the

record. The order of this Tribunal dated 25.07.2022 was an order arising of

Section 9 application filed by Single Pipes in which proceeding liberty was

granted to present financial creditor in para-23 as noted above and financial

creditor has initiated Section 7 proceeding in pursuance of the liberty granted

which required consideration by Adjudicating Authority. Adjudicating Authority

while considering IA No. 2519/2023 and noticing the order of this Tribunal has

rejected the application without giving any specific reason for rejecting the

application. The order passed by Adjudicating Authority is unsustainable. We

thus set aside the order dated 26.05.2023 in so far it reject CP(IB) No.

84/ND/2023. In result the CP(IB) No. 84/ND/2023 is revived before the

Adjudicating Authority to be considered afresh and to be decided in accordance

with law.

6. We make it clear that we are not making any expression or any opinion

on the merits of application and it is to Adjudicating Authority to consider it

after hearing the parties. The appeal is disposed of.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) harleen/NN

Comp. App. (AT) (Ins) No. 1082 of 2023 & I.A. No. 678 of 2024 3 of 3