Insolvency jurisdiction covered project maintenance handover, and a duly registered apartment owners' association was entitled to statutory transfer.

A dispute over handover of maintenance of a corporate debtor's project during CIRP fell within the Tribunal's residuary insolvency jurisdiction under section 60(5)(c) because it was connected with the debtor's assets, operations, and maintenance of the project as a going concern. The maintenance agency could not refuse handover on the ground that the apartment owners' association was not properly registered, as the association was treated as duly registered and the apartment ownership law required transfer of common areas and facilities to it upon formation. Alleged outstanding dues and account reconciliation were not decided in these proceedings and were left to the interim resolution professional.

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Issues: (i) Whether the Tribunal had jurisdiction under the insolvency framework to entertain a dispute concerning handover of maintenance of the corporate debtor's project to the apartment owners' association; (ii) whether the maintenance agency could resist handover on the ground that the association's registration was not in accordance with the apartment ownership statute; (iii) whether alleged outstanding dues between the maintenance agency and homebuyers/association could be adjudicated in these proceedings.

Issue (i): Whether the Tribunal had jurisdiction under the insolvency framework to entertain a dispute concerning handover of maintenance of the corporate debtor's project to the apartment owners' association.

Analysis: The project formed part of the assets and operations of the corporate debtor after commencement of CIRP, and the interim resolution professional was charged with monitoring assets and managing operations. The dispute arose from a pre-insolvency maintenance arrangement connected with the corporate debtor's project, and thus had the requisite nexus with the insolvency resolution process. The residuary jurisdiction under section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 was held wide enough to cover questions arising out of or in relation to insolvency resolution, including maintenance of the project as a going concern.

Conclusion: Yes. The Tribunal held that the dispute was within its jurisdiction under the Insolvency and Bankruptcy Code, 2016.

Issue (ii): Whether the maintenance agency could resist handover on the ground that the association's registration was not in accordance with the apartment ownership statute.

Analysis: The apartment owners' association had been registered and its registration was treated as valid for the purpose of these proceedings. Under section 14 of the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010, the promoter is required to facilitate formation of the association, and upon formation the management of common areas and facilities stands transferred to the association by operation of law. In light of this statutory scheme, the agency appointed by the corporate debtor could not refuse handover of maintenance to the duly registered association.

Conclusion: No. The Tribunal rejected the objection and held that the maintenance agency could not resist handover.

Issue (iii): Whether alleged outstanding dues between the maintenance agency and homebuyers/association could be adjudicated in these proceedings.

Analysis: The Tribunal declined to decide the accounting disputes or the claimed outstanding liabilities in the present applications. It held that such issues should be placed before the interim resolution professional, who is in overall control of the project and can take steps for reconciliation or settlement of accounts.

Conclusion: No. The Tribunal left the dues dispute to be dealt with by the interim resolution professional.

Final Conclusion: The maintenance of the project was directed to be handed over to the registered apartment owners' association, while disputes relating to dues and accounts were kept open for resolution before the interim resolution professional.

Ratio Decidendi: A dispute concerning maintenance of a corporate debtor's project during CIRP, when connected with the assets and operations of the corporate debtor, falls within the Tribunal's residuary insolvency jurisdiction, and a duly registered apartment owners' association is entitled to statutory handover of common areas and maintenance under the applicable apartment ownership law.

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