Sumer Buildcorp Private Limited vs Avenue 54 Welfare Association

IN THE MATTER OF: Sumer Radius Realty Pvt. Ltd. ...Appellant Versus Avenure 54 Welfare Association ...Respondent

Present: For Appellant : Mr. Krishnendu Dutta, Sr. Advocate with Ms. Anne Mathew, Mr. Yash Tandon, Mr. Harshit and Mr. Jashan Vir Singh, Advocates.

For Respondent : Ms. Meghna Rao, Mr. Sujit Lahoti, Ms. Akshta Shah, Mr. Harish Karodia and Ms. Nidhi Jain, Advocates for Intervenors.

WITH

Company Appeal (AT) (Insolvency) No. 1573 of 2025 & I.A. No. 6187, 6188 & 6189 of 2025

IN THE MATTER OF: Sumer Buildcorp Pvt. Ltd. ...Appellant Versus Avenue 54 Welfare Association ...Respondent

Present: For Appellant : Mr. Arun Kathpalia, Sr. Advocate with Mr. Roy Abraham and Mr. Akhil Abrahim Roy, Advocates.

For Respondent : Mr. Abhijeet Sinha, Sr. Advocate with Ms. Nitya Shah, Mr. Kinnar Shah, Mr. Rhythm Buaria, Ms. Aditi Bhargava and Mr. Aridaman Raghav, Advocates for R-1 & R-2. ORDER

ASHOK BHUSHAN, J.

These two appeals have been filed, challenging the common order dated

12.09.2025 passed by the adjudicating authority (National Company Law

Tribunal, Court - V, Mumbai Bench) in I.A. No.5195/2024 & I.A.

No.6034/2024 filed in C.P. (IB) No.284/MB/2024. By the impugned order,

the above applications filed by the appellants, the corporate debtors, praying

for dismissal of the C.P. IB 284/MB/2024 filed under Section 7 of the

Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as the 'Code' or

the 'IBC'), by the Avenue 54 Welfare Association have been dismissed by the

adjudicating authority, aggrieved by which order, these appeals have been

filed.

2. Brief facts necessary to be noticed for deciding the appeal are:

i. Section 7 application was filed by Avenue 54 welfare Association, a

registered society of flat purchasers in the project known as "Avenue

54" at Santacruz West, Mumbai.

ii. The members of the Avenue 54 Welfare Association who had purchased

98 flats in the project got a society registered of the flat buyers namely

Avenue 54 Welfare Association. In the Section 7 application, the Sumer

Buildcorp Private Limited as corporate debtor No. 1 and Sumer Radius

Reality Private Limited as corporate debtor No. 2, alleging default by the

corporate debtor in handing over the possession. Amount claimed to

be in default was ₹203,27,66,369/- only.

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 2 of 19 iii. On the Section 7 application filed by Avenue 54 Welfare Association,

notices were issued to both the corporate debtors who are appellants

before us. An additional affidavit was also filed by the applicant,

respondent on 04.06.2024. An I.A.5195/2024 dated 23.09.2024 was

filed by the Sumer Radius Reality Private Ltd. in the C.P. (IB) 284/2024

praying for dismissal of the company petition in limine. A similar

application was filed by Sumer Buildcorp Private Limited being

I.A.6034/2024, praying for dismissal of the company petition in limine.

In the applications reply was filed by the respondent. Application came

for consideration before the adjudicating authority on 17.06.2025.

iv. Learned counsel for the respondent (applicants of Section 7 application)

offered to file individual affidavits of the homebuyers regarding

authorisation to the applicant in the present company petition which

request was objected by counsel for the corporate debtor, the

adjudicating authority did not accede to the request and directed both

the parties to file written submissions. Adjudicating authority by the

impugned order, rejected both the applications.

3. We have learned Sr. counsels Mr. Arun Kathpalia & Mr. Krishnendu

Dutta appearing for the appellants as well as learned Sr. counsel Mr. Abhijeet

Sinha appearing for the respondent.

4. Learned counsel for the appellant in support of the application

submitted that Section 7 application being C.P. (IB) 284/MB/2024 was filed

by Avenue 54 Welfare Association, which is a registered society. Application

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 3 of 19 filed by the Avenue 54 Welfare Association was not maintainable since Avenue

54 Welfare Association is not the financial creditor of the corporate debtor.

Under Section 7 of the IBC, right is given to the financial creditor to file the

application singly or jointly. Learned counsel further submitted that vide

notification dated 27.02.2019 issued in exercise of power conferred under

sub-Section (1) of Section 7 of the IBC, Central Government has notified 5

other entities who may file the application and the registered society i.e.,

respondent herein is not covered by any of the clauses as notified by the

Central Government on 27.02.2019. Learned counsel for the appellant

referring to Section 7 application submitted that in 'Form - I', the name of the

financial creditor was mentioned as Avenue 54 Welfare Association, whereas,

no financial debt is owed to the Avenue 54 Welfare Association by the

corporate debtors and the application filed by Avenue 54 Welfare Association

was not maintainable and deserves rejection. It is submitted that there was

no authorisation by financial creditor in a class who are members of the

Welfare Association. The resolution which is claimed dated 23.01.2024,

authorising, Mr. Tarun Jain and Mr. Harshit Kakkad are authorisation in

favour of the members of the core committee. It is not proved that the said

resolution was passed by all members of the Association authorising the

Welfare Association to institute Section 7 proceeding, Welfare Association

being not competent to imitate proceeding in its name, application under

Section 7 deserves to be rejected. Adjudicating authority relying on decisions

of NCLT in 'Vipul Green Residents Welfare Association' Vs. 'Vipul Ltd.' in

[IB 541(ND)/2019] by NCLT, New Delhi Bench and another judgement of the

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 4 of 19 NCLT, New Delhi in 'Krrish Florence Estate Buyer's Welfare Association

(KFEBWA)' Vs. 'Angle Infrastructure Private Limited' in [IB-238 (ND)

2024] has rejected the application holding that there is no infirmity in filing

a petition under Section 7 application by the Welfare Association which

decision is erroneous and not in accordance with law. It is submitted that

statutory requirement under Section 7 has to be complied with by an

applicant and in the present case Welfare Association being not financial

creditor, application was not maintainable.

5. Learned Sr. counsel Mr. Abhijeet Sinha appearing for the respondent

refuting the submissions submits that application filed by Welfare Association

was maintainable. He placed reliance on the judgement of the Hon'ble

Supreme Court in the matter of 'JK Jute Mill Mazdoor Morcha' Vs.

'Juggilal Kamlapat Jute Mills Company Ltd., through its Director'

decided on 30.04.2019 in [Civil Appeal No. 20978/2017] contends that

Hon'ble Supreme Court has held an application filed by a registered trade

union of the workers for dues of workers under Section 9 is maintainable.

The said judgement fully covers the issue raised in the appeal and application

under Section 7 filed by Welfare Association was maintainable. Mr. Sinha

further submits that with regard to alleged deficiency in authorisation by

individual financial creditor an offer was made by the respondent through its

counsel seeking liberty of the adjudicating authority to place individual

affidavits of all financial creditor in a class stating their identity as also the

fact that they individually has authorised the applicants in the present

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 5 of 19 company petition, which prayer was opposed by the counsel for the corporate

debtor and has not been accepted by the adjudicating authority, which is

recorded in the order sheet dated 17.06.2025. The applicants thus offered to

cure the defect, if any, as contented by the corporate debtor, which

opportunity was not granted by the adjudicating authority. The Welfare

Association, which is a registered society consists of only the flat purchasers

in the project in question, 98 in numbers, who alone are members of the

society. No third-party is member of society and society consists of above 98

flat buyers on whose behalf Welfare Association has filed the Section 7

application. The technical argument is sought to be raised by the corporate

debtor with the object of delaying disposal of Section 7 application. The

defect, if any, was curable defect and opportunity ought to have been given to

the respondent herein to file individual affidavit and authorisation to dispel

the objection raised by the corporate debtor.

6. No other submissions have been pressed by the appellants.

7. We have considered the submissions of the counsel for the parties and

perused the records.

8. The application under Section 7 has been filed by Avenue 54 Welfare

Association, which claims to be registered society registered on 11.05.2022

under Society Registration Act by Assistant Registrar Society, Greater

Mumbai region. 'Form - I' of the application under Section 7 filed by Avenue

54 Welfare Association is Annexure A - 2 to the appeal. It is relevant to notice

Part I of the application which is as follows:

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 6 of 19 "PART I

PARTICULARS OF APPLICANT (PLEASE PROVIDE FOR EACH FINANCIAL CREDITOR MAKING THE APPLICATION)

NAME OF FINANCIAL Avenue 54 Welfare CREDITOR Association

DATE OF 11th May, 2022 INCORPORATION OF FINANCIAL CREDITOR

IDENTIFICATION Registration NUMBER OF No.923/2022 under FINANCIAL CREDITOR the Societies Registration Act, 1860

ADDRESS OF THE Shop No. I, Ground REGISTERED OFFICE Floor, Golden OF THE FINANCIAL Bungalow, Juhu Road, CREDITOR Santacruz West, Mumbai 400 054.

NAME AND ADDRESS Mr. Tarun Jain, Mr. OF THE PERSON Harish Kakkad Copy of AUTHORISED TO Resolution dated 23rd SUBMIT APPLICATION January 2024 of the ON ITS BEHALF Financial Creditor is (ENCLOSE annexed and marked AUTHORISATION) as Exhibit "A"

NAME AND ADDRESS Divya Shah OF PERSON RESIDENT Associates IN INDIA AUTHORISED 4th Floor, TO ACCEPT THE Janmabhoomi Bhavan, SERVICE OF PROCESS J anmabhoomi Marg, ON ITS BEHALF Fort, Mumbai - 400 001 (ENCLOSE Email: AUTHORISATION) vperiera@dsaindia.com Vakalatnama dated 23 rd March 2024 authorizing Divya Shah Associates Is annexed

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 7 of 19 and marked as Exhibit "B"

9. Application thus was claimed to be filed by Avenue 54 Welfare

Association and the column, name and address of the person authorised to

submit application on its behalf resolution dated 23.01.2024 was claimed,

which resolution was also part of the record.

10. Section 7(1) of the IBC provides as follows:

"7. Initiation of corporate insolvency resolution process by financial creditor.-

(1) A financial creditor either by itself or jointly with 1[other financial creditors, or any other person on behalf of the financial creditor, as may be notified by the Central Government,] may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority when a default has occurred.

[Provided that for the financial creditors, referred to in clauses (a) and (b) of sub-section (6A) of section 21, an application for initiating corporate insolvency resolution process against the corporate debtor shall be filed jointly by not less than one hundred of such creditors in the same class or not less than ten per cent. of the total number of such creditors in the same class, whichever is less:

Provided further that for financial creditors who are allottees under a real estate project, an application for initiating corporate insolvency resolution process against the corporate debtor shall be filed jointly by not less than one hundred of such allottees under the same real estate project or not less than ten per cent. of the total number of such allottees under the same real estate project, whichever is less:

Provided also that where an application for initiating the corporate insolvency resolution process against a corporate debtor has been filed by a financial creditor referred to in the first and second provisos and has not been admitted by the Adjudicating Authority before the

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 8 of 19 commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2020, such application shall be modified to comply with the requirements of the first or second proviso within thirty days of the commencement of the said Act, failing which the application shall be deemed to be withdrawn before its admission.] Explanation.--For the purposes of this sub-section, a default includes a default in respect of a financial debt owed not only to the applicant financial creditor but to any other financial creditor of the corporate debtor."

11. The above provision indicates that application under Section 7 can be

filed by financial creditor, either by itself or jointly with other financial creditor

or any other person on behalf of the financial creditor as has been notified by

the Central Government. Central Government has issued notification dated

27.02.2019 in exercise of power under Section 7(1), which notification is as

follows:

"MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 27th February, 2019 S>O> 1091(E). -In exercise of the powers conferred by sub-section (1) of section 7 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby notifies following persons who may file an application for initiating corporate insolvency resolution process against a corporate debtor before the Adjudicating Authority, on behalf of the financial creditor: -

(i) a guardian; (ii) an executor or administrator of an estate of a financial creditor;

(iii) a trustee (including a debenture trustee); and

(iv) a person duly authorised by the Board of Directors of a Company.

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 9 of 19 [F. No. 30/25/2018 - Insolvency Section] GYANESHWAR KUMAR SINGH, Jt. Secy."

12. A perusal of notification indicates that by notification 5 categories of

persons who were authorised to file application. The 54 Welfare Association,

which is registered society under Society Registration Act is not covered by

any of the clauses under the notification.

13. Although, in Part I name of the financial creditor is mentioned as

"Avenue 54 Welfare Association", but in Part IV of the application, it is pleaded

that financial creditor comprises of the flat purchasers who had purchased

98 flats in the project known as Avenue 54 Welfare Association. It was further

pleaded that members of the financial creditor have paid a sum of

₹203,27,66,369/-. Part IV of the application, column one is as follows:

"PART IV

PARTICULARS OF FINANCIAL DEBT

TOTAL AMOUNT OF Amount of Debt Rs.

DEBT GRANTED 798,98,66,995/- [Rupees Seven Hundred Ninety-Eight Crores, Ninety-Eight Lakhs, Sixty-Six Thousand, Nine Hundred NinetyFive Only). The Financial Creditor comprises of flat purchasers who have purchased 98 flats in the project known as 'A venue 54' at Santacruz West, Mumbai. The debt is the total value of the

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 10 of 19 flats that are allotted to the members of the Financial Creditor. Out of these amounts, members of the Financial Creditor have paid a sum of Rs.203,27,66,369/-

[Rupees Two Hundred Three Crores, Twenty Seven Lakhs, Sixty-Six Thousand, Three Hundred Sixty-Nine Only). These amounts have been paid by the Home Buyers to the Promoters and these amounts have been utilized in the Project. The balance amounts are payable as per progress in the construction work of the project. The members of the Financial Creditor states that they are ready and willing to pay the balance amount of Rs.595,71,00,626/- [Rupees Five Hundred Ninety Five Crores, Seventy One Lakhs, Six Hundred Twenty Six Only) as per the terms of the allotment letter. A DATE OF list of the members of DISBURSEMENT Financial Creditor alongwith details of their flat and consideration is annexed and marked Exhibit "F" The flat purchasers have made payment of amounts towards the respective flats from

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 11 of 19 time to time between the period up to 2018. The first flat was purchased in January 2016 by the member of the Financial Creditor. The Financial Creditor craves leave to refer and rely on the Bank Statement of its members evincing payments made to the Promoter as and when necessary."

14. From the pleadings of Section 7 application, Part IV as noted above, it

is clear that Welfare Association was registered as Society Registration Act

which consists of 98 flat buyers and the dues of 98 flat buyers was the basis

of initiating Section 7 proceeding, although in Part I name of the financial

creditor was shown as Avenue 54 Welfare Association. The rules have been

framed namely; Insolvency & Bankruptcy (Application to Adjudicating

Authority), Rules 2016, whereunder Rule 4, which deals with the application

under Section 7 by financial creditor. Rule 4(1) is as follows:

"4. Application by financial creditor--

(1) A financial creditor, either by itself or jointly, shall make an application for initiating the corporate insolvency resolution process against a corporate debtor under section 7 of the Code in Form 1, accompanied with documents and records required therein and as specified in the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016."

15. The Form 1, Part I provides for particulars of applicant. Form 1, Part I

is as follows:

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 12 of 19 "Form 1 (See sub-rule (1) of rule 4) APPLICATION BY FINANCIAL CREDITOR(S) TO INITIATE CORPORATE INSOLVENCY RESOLUTION PROCESS *UNDER CHAPTER II OF PART II/ UNDER CHAPTER IV OF PART II OF THE CODE PART 1

PARTICULARS OF APPLICANT (PLEASE PROVIDE FOR EACH FINANCIAL CREDITOR MAKING THE APPLICATION)

1. NAME OF FINANCIAL CREDITOR

2. DATE OF INCORPORATION OF FINANCIAL CREDITOR

3. IDENTIFICATION NUMBER OF FINANCIAL CREDITOR

4. ADDRESS OF THE REGISTERED OFFICE OF THE FINANCIAL CREDITOR

5. NAME AND ADDRESS OF THE PERSON AUTHORISED TO SUBMIT APPLICATION ON ITS BEHALF (ENCLOSE AUTHORISATION)

6. NAME AND ADDRESS OF PERSON RESIDENT IN INDIA AUTHORISED TO ACCEPT THE SERVICE OF PROCESS ON ITS BEHALF (ENCLOSE AUTHORISATION)

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 13 of 19

16. When we look into item No. 5, it is clear that column specifically

provides "name and address of the person authorised to submit application

on its behalf" thus, financial creditor can authorise singly or jointly to a

person to submit the application on its behalf. Thus, any person authorised

by financial creditor can very well submit the application under Section 7

which is a statutory scheme. In Part I, the resolution which has been relied

is a resolution dated 23.01.2024, which was part of Section 7 application as

Exhibit A. It is useful to notice Exhibit A, which is as follows:

"Exhibit A AVENUE 54 WELFARE ASSOCIATION Society Registration No. Ultra Mile, 1, Golden Bungalow, Opp Bank of Baroda, Juhu Road, Santacruz West, Mumbai 400 054. CERTIFIED TRUE COPY OF THE RESOLUTION PASSED AT THE VIRTUAL MEETING OF THE CORE COMMITTEE MEMBERS OF THE AVENUE 54 WELFARE ASSOCIATION AT ON 23"' JANUARY 2024 "RESOLVED THAT Mr. Yogin Porecha, Mr. Rupen Bhatt, Mr. Tarun Jain, Mr. Kapil Bagla and Mr. Harish Kakkad, members of AVENUE 54 WELFARE ASSOCIATION, be and are hereby severally authorized for and on behalf of the Association to appoint. engage. and/or avail the services of any Advocates, Attorneys, Solicitors and/or Counsel. Firm of Lawyers or Solicitors lo act, appear. plead for and on behalf of the Association and to protect he rights and interests of the members and (i) for filing debts before the NeSL on behalf of the Association, (ii) filing Section 7 Petitions before the National Company Law Tribunal. Mumbai against promoters of Avenue 54 Project being Sumer Buildcorp Private Limited and Sumer Radius Realty Private. (iii) filing application to challenge the claims of Piramal Capital and Housing Finance in the ongoing IBC proceedings in respect of Radius Estates and Project Private Limited before the National Company Law Tribunal, Mumbai and (iv)

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 14 of 19 filing applications in the Commercial Suit no.101 of 2023 filed on behalf of the association against Sumer Radius Really Pvt Ltd & Ors. to take necessary steps for obtaining decree.

"FURTHER RESOLVED THAT Mr. Yogln Porecha, Mr. Rupen Bhatt, Mr. Tarun Jain, Mr. Kapil Bagla and Mr. Harish Kakkad, members of AVENUE 54 WELFARE ASSOCIATION, be and are hereby severally authorized for and on behalf of the Association to make, sign, execute, verify, affirm, present and file the Vakalatnama, Applications. Transfer Applications, Rejoinder, Sur-Rejoinder, Writ Petitions, Appeals, Writ Petitions, Revision Applications, Special Leave Petitions, Consent Terms and Affidavits and all other papers, pleadings and documents necessary and expedient in the opinion of the Attorney and/or Solicitor and/or Counsel to be made, signed, verified, affirmed, presented or filed before any Court of Justice in India or any other Court, Tribunal, Revenue Tribunal, Municipal authority, Judicial or Quasi Judicial authority for various reliefs including protecting the interest of the Association and all other reliefs as maybe required or considered necessary and/or as may be required from time to time, for and on behalf of the Association as and when required and to enter into any compromise, settlement of case, they may consider appropriate in the interest of the Association."

Dated this 23 day of January, 2024"

17. When we look into the above resolution, the above resolution is claimed

to be resolution passed at the virtual meeting of the core committee members

of the Avenue 54 Welfare Association. The above resolution thus cannot be

said to be resolution by all the members of the Welfare Association authorising

the 2 members of the core committee to file Section 7 application. Any

authorisation has to be by all the members on whose behalf the application

is claimed to be filed.

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 15 of 19

18. Learned counsel for the respondent has submitted that when both the

applications were being heard, in which application the corporate debtors

have raised objection regarding competency of Avenue 54 Welfare Association

to file Section 7 application, the applicant offered to file individual affidavits

of the homebuyers stating their identity as also the fact that the individual

individually has authorised the applicant in the present company petition,

which was objected by counsel for the corporate debtor and was not accepted

by the Court. Reference has been made to the proceeding dated 17.06.2025

of the adjudicating authority, which order was recorded in I.A.6034/2024 and

I.A.5195/2024 in C.P. (IB) 284/2024. Copy of the order dated 17.06.2025 is

brought as Annexure R - 3 to the additional affidavit filed by the respondent

in Comp. App. (AT) (Ins.) N0.1572/2025, which is as follows:

"IA 6034/2024 and IA 5195/2024: - Heard, learned counsel for the Applicant as well as the Respondent in these 2 IAs.

While re-joining, the learned counsel for the Respondent offered to tender the individual affidavits of the home buyers stating their identity, as also the fact that they individually have authorized the applicants in the present Company Petition. Senior Counsel Mr. Joshi, appearing for the Applicants opposed it, stating that these IAs were heard by the earlier constituted Bench and, thereafter, substantial hearing has happened before the present Bench including submissions of the counsels for the Applicants as also the counsel for the respondent. At this belated stage of re-joining tendering the affidavits across the Bar should not be accepted. In view of the facts that, the matter has been substantially argued, we deem it appropriate that at this stage of re-joining any new material cannot be

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 16 of 19 brought on record and accordingly, such affidavits tendered are rejected to be taken on record. Parties on either side are at liberty to give their written submission, not exceeding 7 pages, within 2 weeks. List for written submission on 17.07.2025."

19. When we read the application Form A, the intendment is clear that the

debt and default is of 98 flat buyers who claimed to be members of the Welfare

Association with respect to whose claim proceeding under Section 7 was

initiated against the corporate debtor. It is true that the financial creditor

could not be said to be Avenue 54 Welfare Association rather the financial

creditors were 98 flat buyers who claimed to have form the registered society.

20. We have noticed rival submissions of both the parties regarding

maintainability of Section 7 application on behalf of Avenue 54 Welfare

Association. We, however, are of the view that when Section 7 applicants

offered to file individual affidavit and authorisation to cure the defect, if any,

adjudicating authority ought to have been given opportunity to the applicant

to cure the defects. We have noticed 'Form A' as noticed above, it cannot be

disputed that any person can be authorised by financial creditor to file an

application which may also be a registered society, however, there has to be

authorisation by financial creditor and in the present case, the resolution

which is claimed to be resolution 23.01.2024, authorising the society to

Avenue 54 Welfare Association to institute Section 7 application cannot be

said to be authorisation by members of the society. Resolution itself claims

to be resolution of core committee of the members of the Avenue 54 Welfare

Association. There being defect in authorisation, opportunity ought to have

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 17 of 19 been given to applicant to file individual affidavit and authorisation as was

submitted before the Court on 17.06.2025, as noted above.

21. We, thus are of the view that ends of justice be served in granting an

opportunity to the applicant Avenue 54 Welfare Association to file the

individual affidavit of homebuyers stating the identity as also the fact that

they individually authorised the applicant in the company petition as also has

been noticed in the order dated 17.06.2025. We grant 7 days' time to the

respondent Avenue 54 Welfare Association to file the individual affidavits as

noticed in the order dated 17.06.2025.

22. We having allowed the above opportunity to respondent the applicant

of Section 7 application which shall cure the defect in authorisation, which

was offered by the applicant themselves before the adjudicating authority,

which was denied. We are of the view that respective submissions raised by

the parties with regard to maintainability of Section 7 application at the

instance of Avenue 54 Welfare Association and reliance on different

precedents need no consideration. On their being valid authorisation in

favour of the society to file the Section 7 application, the application has to be

treated to be maintainable under Section 7 and need to be proceeded in

accordance with law.

23. As noted above, no other submissions have been pressed in this appeal.

24. In view of the foregoing discussions, we dispose of the appeal in

following manner:

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 18 of 19 i. The order dated 12.09.2025 passed in I.A.5195/2024 and

I.A.6034/2024 is not interfered with for the reasons as indicated above.

ii. The respondent Avenue 54 Welfare Association is permitted to file

"individual affidavits of the homebuyers stating their identity as also

the fact that they individually have authorised the applicants in the

present company petition" within a period of 7 days from today.

The adjudicating authority, after receipt of the above affidavits may

proceed to hear the Section 7 application in accordance with law.

Both the appeals are disposed of accordingly.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical)

NEW DELHI

26th November, 2025

himanshu

Comp. App. (AT) (Ins.) No. 1572 & 1573 of 2025 19 of 19