Arbitral award enforced for Kalpataru Properties; interveners must file separate appeals for relief.

The tribunal upheld the enforcement of the arbitral award in favor of Kalpataru Properties Pvt. Ltd., allowing the Corporate Debtor to sell the subject property. Indiabulls Housing Finance Ltd. was permitted to withdraw its appeal upon depositing the required amount. SREI Equipment Finance Ltd.'s intervention application was rejected as they did not file a separate appeal against the NCLT's order. The tribunal emphasized the adherence to IBC timelines and the principle that interveners must file independent appeals to claim relief.

---

---

Issues Involved:
1. Validity of the arbitral award and its enforcement.
2. Role and rights of the Interim Resolution Professional (IRP) during the Corporate Insolvency Resolution Process (CIRP).
3. Rights of the secured financial creditor (SREI Equipment Finance Ltd.) and their intervention in the appeal.
4. Withdrawal of the appeal by Indiabulls Housing Finance Ltd.

Detailed Analysis:

1. Validity of the Arbitral Award and its Enforcement:
The arbitral award dated 29th August 2016 was in favor of Kalpataru Properties Pvt. Ltd., directing the Corporate Debtor to sell, transfer, and assign the subject property. This award was challenged under Section 34 of the Arbitration and Conciliation Act, 1996, but was upheld by the Bombay High Court and the Supreme Court. The National Company Law Tribunal (NCLT) Mumbai allowed Kalpataru's application (I.A. No. 1921 of 2021) to enforce the award during the CIRP.

2. Role and Rights of the Interim Resolution Professional (IRP) During CIRP:
The IRP was appointed on 06.11.2019. The IRP acknowledged that the subject property was not part of the CIRP and recognized the entitlement of Rs. 75,30,00,000/- to the Corporate Debtor. The NCLT directed the IRP to execute the conveyance deed and other required documents for the sale of the property against the balance consideration.

3. Rights of the Secured Financial Creditor (SREI Equipment Finance Ltd.) and Their Intervention in the Appeal:
SREI Equipment Finance Ltd., a secured financial creditor and member of the Committee of Creditors (CoC), filed I.A. No. 2623 of 2021 seeking intervention, arguing that the enforcement of the arbitral award during the CIRP was impermissible under Section 14(1)(b) of the IBC. SREI contended that the NCLT's order prejudicially affected their rights and that the arbitral award should not be enforced during the CIRP. However, the tribunal noted that SREI did not file a separate appeal against the NCLT's order and thus could not claim relief in the present appeal.

4. Withdrawal of the Appeal by Indiabulls Housing Finance Ltd.:
Indiabulls Housing Finance Ltd. sought to withdraw its appeal (Company Appeal (AT) Ins. No. 880 of 2021) following a statement made before the Supreme Court that the appeal would be withdrawn if Kalpataru deposited Rs. 75.30 crores. The Supreme Court's order dated 14.11.2022 allowed the withdrawal of the appeal upon deposit of the amount. The tribunal allowed Indiabulls to withdraw the appeal, noting that SREI, as an intervener, could not oppose the withdrawal without having filed a separate appeal.

Conclusion:
The tribunal upheld the enforcement of the arbitral award in favor of Kalpataru Properties Pvt. Ltd. and allowed the withdrawal of the appeal by Indiabulls Housing Finance Ltd. The intervention application by SREI Equipment Finance Ltd. was rejected, as they did not file a separate appeal against the NCLT's order. The tribunal emphasized the importance of adhering to the timelines prescribed under the IBC and the principle that interveners cannot claim relief without filing an independent appeal.

---