Appeal Denied: Schedule B property remains part of Liquidation Estate. Ownership requires registered Sale Deed.

The Tribunal dismissed the appeal, ruling that the Schedule B property remains part of the Liquidation Estate as no security interest was created in favor of the Appellants. The Tribunal emphasized that ownership does not transfer without a registered Sale Deed and denied the request for completion of remaining works and refund of excess sum paid. The appeal was dismissed without costs awarded, and the pending Stay application was closed.

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Issues Involved:

1. Exclusion of Schedule B property from the Liquidation Estate.
2. Execution and registration of the Sale Deed for Schedule B property.
3. Completion of remaining works on Schedule B property.
4. Refund of excess sum paid towards the Sale Consideration.
5. Award of costs of the appeal.

Summary:

1. Exclusion of Schedule B Property from Liquidation Estate:
The Appellants sought to exclude Schedule B property from the Liquidation Estate of the Corporate Debtor, arguing they were bona fide home buyers who had paid the full sale consideration and taken possession. The Tribunal observed that only assets charged as security interest fall outside the Liquidation proceedings. Since no security interest was created in favor of the Appellants and no Sale Deed was executed, the property remains part of the Liquidation Estate.

2. Execution and Registration of Sale Deed:
The Appellants requested the execution and registration of the Sale Deed for Schedule B property. The Tribunal noted that a mere agreement to sell or possession does not amount to ownership. The title does not pass until registration is effected. The Tribunal cited precedents, emphasizing that an agreement of sale without a registered deed does not confer title or transfer interest in immovable property.

3. Completion of Remaining Works:
The Appellants sought the completion of remaining works on Schedule B property. The Tribunal acknowledged that the Appellants had incurred expenses for interior work and had possession since 2016. However, it reiterated that ownership rests with the Corporate Debtor in the absence of a registered Sale Deed.

4. Refund of Excess Sum Paid:
The Appellants requested a refund of the excess sum paid towards the Sale Consideration. The Tribunal did not explicitly address this issue in the judgment, focusing instead on the broader question of ownership and exclusion from the Liquidation Estate.

5. Award of Costs:
The Appellants sought costs for the appeal. The Tribunal dismissed the appeal, finding no legal flaws in the Adjudicating Authority's order and did not award any costs.

Conclusion:
The Tribunal dismissed the appeal, affirming that no security interest was created in favor of the Appellants, and the property remains part of the Liquidation Estate. The pending connected IA No. 807 of 2023 (For Stay) was also closed.

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