TaxTMI 
TaxTMI 
2020 (2) TMI 1409
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....S OF THE CASE: 2. Mrs. Rachna Singh and Mr. Ajay Singh (Allottees) - Financial Creditors moved application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code') for initiation of Corporate Insolvency Resolution Process of 'M/s Umang Realtech Pvt. Ltd.' (Corporate Debtor), a real estate company constructing flats/ apartments for allottees. The Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi by impugned order dated 20th August, 2019 admitted the application and directed the Financial Creditor(s) to deposit a sum of Rs. 2 Lakhs with the Interim Resolution Professional to meet out the expenses for performing functions assigning to him. As per the I&B Code, after initiation of the Corporate Insolvency Resolution Process it is duty of the Interim Resolution Professional/ Resolution Professional to keep the company a going concern. In the case of a real estate infrastructure company to keep the company going concern, the flats/ apartments are to be completed. However, a sum of Rs. 2 Lakhs as ordered to be deposited by the Financial Creditor(s) with the Interim Resolution Professional cannot meet the expens....
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....Homebuyers) of Infrastructure Company are 'Financial Creditors'. It further observed that RERA is in addition to and not in derogation of the provisions of any other law for the time being in force, also makes it clear that the remedies under RERA to allottees were intended to be additional and not exclusive remedies. Therefore, provisions of the Code would apply in addition to RERA. 6. The following are the problems which have now cropped up. There is a difference in Form B and Form C for submission of proof claims by the Operational Creditors and the Financial Creditors. Prior to the Notification dated 27thNovember, 2019, Form B which is for submission of proof of claims by Operational Creditors before the Interim Resolution Professional, did not have any column for details of any security held by them, unlike Form C which had such a separate column. The inclusion of this column vide the aforesaid notification acknowledges the fact that Operational Creditors can also be secured and that earlier, due to absence of any such specific column, the Operational Creditors were deprived from submitting their claims and to state whether any security is held by them either by annexing....
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....rs take 'haircut'. The Resolution Applicants satisfy them most of the time with lesser amount than the amount as determined. In the case of allottees (Financial Creditors), there cannot be a haircut of assets/ flats/ apartment. The law is to be explained now again in a reverse way. REVERSE CORPORATE INSOLVENCY RESOLUTION PROCESS: 12. In "Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta & Ors. (2019 SCC OnLine SC 1478)", Hon'ble Supreme Court observed as follows: "90. In Swiss Ribbons (supra) this Court was at pains to point out, referring, inter alia, to various American decisions in paras 17 to 24, that the legislature must be given free play in the joints when it comes to economic legislation. Apart from the presumption of constitutionality which arises in such cases, the legislative judgment in economic choices must be given a certain degree of deference by the courts. In para 120 of the said judgment, this Court held: "120. The Insolvency Code is a legislation which deals with economic matters and, in the larger sense, deals with the economy of the country as a whole. Earlier experiments, as we have seen, in terms of leg....
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....r. 15. 'Uppal Housing Pvt. Ltd.' invested certain amount as an outsider Financial Creditor and as Promoter cooperating with the Interim Resolution Professional, having expertee of real estate project, so we asked it to give time frame for completion of the flats/apartments of the project and time frame for providing common area facilities like Swimming Pool, Club House etc. as per the agreement. They were directed to provide a chart showing the amount as due from different allottes and default, if any, committed by allottee(s). The progress report has also been taken on record. Following facts have been highlighted by 'Uppal Housing Pvt. Ltd.', which is also accepted and endorsed by Mr. Manish Kr. Gupta, Interim Resolution Professional, who is present and always remain present in person. (i) There are 706 number of flats/apartments in Winter Hills - 77, Gurgaon project. Out of 706 flats/apartments, 624 flats/apartments have been booked/agreed to be sold which includes 3 bookings done during CIRP. The Corporate Debtor offered possession to all 624 allottees through the Interim Resolution Professional and asked them to pay their respective outstanding dues. (i....
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.... 4 months. (vii) The Corporate Debtor has already applied for water connection and are in process of applying electricity connection. The Corporate Debtor is following up with the statutory authority(ies) so that water and electricity connections provided expeditiously. (viii) The Corporate Debtor has already installed two lifts each in every tower. Lifts would be functional as per the requirement of the allottees. (ix) It is submitted that Air condition, Kitchen, Wardrobes, fans, Chimney, Geyser would be installed in the respective flats before the allottees actually starts residing in their respective flats. Approximately 40-42% allottees have taken possession without the fit-outs and they will do necessary fit-outs on their own. Such allottees have made payment to the Corporate Debtor after deducting the cost of the fit-outs. The Corporate Debtor would provide necessary fit-outs in rest of the flats expeditiously and the entire work would be completed within 4-5 months depending upon fund follow and delivery of necessary material from the suppliers, subject to final payment by each of the allottees. (x) Uppal Housing Pvt. Ltd. has requested to....
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....e project. Therefore, all the asset of the company (Corporate Debtor) are not to be maximized. The asset of the company (Corporate Debtor - real estate) of that particular project is to be maximized for balancing the creditors such as allottees, financial institutions and operational creditors of that particular project. Corporate Insolvency Resolution Process should be project basis, as per approved plan by the Competent Authority. Any other allottees (financial creditors) or financial institutions/ banks (other financial creditors) or operational creditors of other project cannot file a claim before the Interim Resolution Professional of other project and such claim cannot be entertained. So, we hold that Corporate Insolvency Resolution Process against a real estate company (Corporate Debtor) is limited to a project as per approved plan by the Competent Authority and not other projects which are separate at other places for which separate plans approved. For example - in this case the Winter Hill - 77 Gurgaon Project of the 'Corporate Debtor' has been place of Corporate Insolvency Resolution Process. If the same real estate company (Corporate Debtor herein) has any other proje....
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....luding payment of compensation and/or refund, entailing a dismissal of the said application. At this stage also, it is important to point out, in answer to the arguments made by the Petitioners, that under Section 65 of the Code, the real estate developer can also point out that the insolvency resolution process under the Code has been invoked fraudulently, with malicious intent, or for any purpose other than the resolution of insolvency. This the real estate developer may do by pointing out, for example, that the allottee who has knocked at the doors of the NCLT is a speculative investor and not a person who is genuinely interested in purchasing a flat/apartment. They can also point out that in a real estate market which is falling, the allottee does not, in fact, want to go ahead with its obligation to take possession of the flat/apartment under RERA, but wants to jump ship and really get back, by way of this coercive measure, monies already paid by it. Given the above, it is clear that it is very difficult to accede to the Petitioners' contention that a wholly one-sided and futile hearing will take place before the NCLT by trigger-happy allottees who would be able to ig....
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....aneously. The allottees are directed to deposit their balance amount and pay 90% without penal interest, if not deposited, by 15th March, 2020. The Allottees in whose favour possession has been offered and clearance has been given by the competent authority are bound to pay the cost for registration and directed to deposit registration cost to get the flats/apartments registered after paying all the balance amount in terms of the agreement. 28. Common area such as Swimming Pool, Club House etc. as per the agreement, be also completed by 30th August, 2020. The allottees are allowed to form 'Residents Welfare Association' and get it registered to empower them to claim the common areas. 29. All these processes should be completed by 30th August, 2020. If it completed, the Corporate Insolvency Resolution Process be closed after intimating it to the Adjudicating Authority (National Company Law Tribunal). The resolution cost including fee of the Interim Resolution Professional will be borne by the Promoter. Only after getting the certificate of completion from the Interim Resolution Professional/ Resolution Professional and approval of the Adjudicating Authority (National Company L....
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.... Ishwar Chander 11th October 2019 66,534 16 K-101 Priyamvada Singh 11th October 2019 2,03,603 17 C-203 Mukesh Sahitya 11th October 2019 36,207 18 L-1601 Nitika Mondal 11th October 2019 11,15,913 19 L-1401 Susmita Avinash 11th October 2019 9,13,083 20 B-804 Purva Misra 11th October 2019 51,092 21 D-402 Puneet Chawla 11th October 2019 55,503 22 H-201 Surya Bhan 12th October 2019 4,59,933 23 G-402 Gaurav Gairola 12th October 2019 11,25,360 24-1502 25 C-1202 Mukesh Agarwal 12th October 2019 6,90,735 Rajiv Soni 12th October 2019 7,05,654 26 G-304 Deepak Sehgal 13th October 2019 16,35,131 27 E-202 Shiraz Askari 13th October 2019 11,60,339 28 C-1004 Vishal Mahajan 13th October 2019 9,26,062 29 C-1604 Deepu Malik 13th October 2019 2,89,906 30 A-1003 Nidhi Datt 13th October 2019 1,08,301 31 K-304 Gaurav Singh Gill 14th October 2019 29,550 32 F-404 33 D-904 Sumeet Munjal 14th October 2019 1,78,854 Akhil Sukhija 14th October 2019 2,61,172 34 J-1401 Jitender Kumar Munjal....
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....95 69 L-901 Narendra Mahipal 23rd October 2019 38,685 70 L-1003 Naveen Mahipal 23rd October 2019 8,20,930 71 G-801 Vikram Jairath 22nd October 2019 12,25,914 72 C-1503 Sneh Bhatia 23rd October 2019 2,57,783 73 C-1702 Prabha Thakran 23rd October 2019 1,76,318 74 J-1704 75-1004 Prabha Thakran 23rd October 2019 1,95,780 Rita Sharma 24th October 2019 2,87,251 76 B-903 Sayan Chatterjee 12th October 2019 93,090 77 H-403 78 F-303 Amit Kathuria 12th October 2019 1,61,466 Bhavna Chadda 16th October 2019 64,378 79 C-303 Nishant Mehta 13th October 2019 2,03,114 80 1-801 81 G-1001 Aparna Batra Monisha Saraf 13th October 2019 9,17,504 14th October 2019 1,18,827 82 B-1001 Virender Singh 14th October 2019 2,15,245 83 J-1204 Monica Yadav 14th October 2019 8,47,619 84 8-1503 Ajay Gupta 15th October 2019 57,859 85 L-1803 Ruchi Sehgal 15th October 2019 2,98,470 86 A-303 J. V. Abhay 15th October 2019 1,73,830 87 E-103 Parmeet Vasdev 15th October 2019 7,60,510 888-1803 Pankaj Arora....
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.... Anuj Pratap Singh 22nd October 2019 1,66,936 124 C-302 Rajesh Hariram Mundheda 22nd October 2019 3,86,376 125 K-801 Varun Gupta 22nd October 2019 77,268 126 A-702 127 J-502 Sarojini Vats Aaras Vasa 23rd October 2019 2,73,733 23rd October 2019 9,72,321 128 E-404 Aaras Vasa 23rd October 2019 8,40,608 129 K-901 Ravi Ramaswamy 23rd October 2019 2,36,733 130 K-401 Babita Karki 24th October 2019 6,79,584 131 B-802 Ruby Sahney 24th October 2019 2,57,667 132 K-204 Payal Goyal 24th October 2019 9,76,711 Document 4 PROJECT WINTER HILLS 77, SECTOR-77, GURUGRAM LIST OF CUSTOMERS WHO HAVE TAKEN POSSESSION Si No. Unit No 1st Aplicant Name Possession Date Amount Received (excluding TDS) 133-1503 Gaurav Chadha 24th October 2019 8,68,915 134 C-503 Sachin Malik 24th October 2019 10,42,323 135 G-1404 Nita Chaudhari 24th October 2019 15,11,047 136 -1003 Rohit Chopra 24th October 2019 8,20,800 137 D-703 Amit Kumar Sobti 24th October 2019 3,03,231 138 L-104 139 K-701 Ripen Gupta 24th October 2019 8,0....
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.... 2019 Document 5Traceback (most recent call last): File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\direct_extract_text.py", line 19, in from google_doc_api import process_single_document File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\google_doc_api.py", line 345 elif mime_type in ["image/gif"]: IndentationError: expected an indented block after 'if' statement on line 341 Document 6Traceback (most recent call last): File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\direct_extract_text.py", line 19, in from google_doc_api import process_single_document File "C:\inetpub\vhosts\taxmanagementindia.com\httpdocs\python_image_text_project\google\google_doc_api.py", line 345 elif mime_type in ["image/gif"]: IndentationError: expected an indented block after 'if' statement on line 341 Document 7 SI No. Unit No 1st Aplicant Name PROJECT WINTER HILLS 77, SECTOR-77, GURUGRAM LIST OF CUSTOMERS WHO HAVE TAKEN POSSESSION Possession Date Amount Received (excluding TDS) 268 J-1001 Mrs. Jogender Mahey 9th October 2019 ....
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.... 306 G-1603 Satyanarayan Singh Bhatti 8th Novemebr 2019 13,88,154 307 C-603 308 B-201 Deepak Mehta 8th Novemebr 2019 6,74,903 Rajwati 9th November 2019 2,35,546 309 L-1602 Ajit Kumar Yadav 9th November 2019 2,85,578 310 D-201 Amit Kumar 9th November 2019 2,07,029 311 L-604 Seema Arya 9th November 2019 7,24,846 312-1602 Vishal Kumar 9th November 2019 9,55,205 313 G-1401 Samit Mehrotra 9th November 2019 12,64,371 314 F-202 Jagmohan Singh Khanna 09th November 2019 5,10,704 315 1-204 Saurabh Kapoor 09th November 2019 9,91,788 316 -1103 Mohnish Saini 09th November 2019 15,51,844 Document 8 PROJECT WINTER HILLS 77, SECTOR-77, GURUGRAM LIST OF CUSTOMERS WHO HAVE TAKEN POSSESSION SI No. Unit No 1st Aplicant Name Possession Date Amount Received (excluding TDS) 317 B-502 318 E-401 Bhagwan Dass Arora Pradeep Wadhera 09th November 2019 2,58,679 11th November 2019 5,16,359 319 F-304 320-904 Manindar Singh Chawla 11th November 2019 11,35,148 Hari Baboo Agrawal 11th November 2019 9,18,569 321 D-902 Manu....
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....082 358 C-1502 359 G-302 Ashish Nagar 30th November 2019 77,048 360 E-1003 361 L-1504 362 D-504 Madhu Vermani Gaurav Mishra Manu Paliwal 2nd December 2019 3,63,777 2nd December 2019 12,66,599 2nd December 2019 1,72,043 Amrendra Kumar 02nd December 2019 2,58,563 363-1201 364 B-104 365 H-402 Sanjay Arora Neetika Atul Katyal 02nd December 2019 15,75,529 03rd December 2019 04th December 2019 80,817 1,84,453 Document 9 PROJECT WINTER HILLS 77, SECTOR-77, GURUGRAM LIST OF CUSTOMERS WHO HAVE TAKEN POSSESSION SI No. Unit No 1st Aplicant Name Anoop Bahl Possession Date Amount Received (excluding TDS) 14 366 E-903 367 A-401 Aarzoo Seth 05th December 2019 05th December 2019 6,71,397 2,58,552 368 L-902 369 H-604 Shweta Arun Mamtani 05th December 2019 11,52,960 06th December 2019 353361 370 F-503 Monica Kar 06th December 2019 370348 371 L-401 Shashank Agarwal 7th December 2019 1039046 372 B-1204 Arvind Keswani 7th December 2019 1562796 373 G-1004 Ritu Prasad 07th December 2019 1358908 ....
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....1203 Prince Chhabra 11th January 2020 452 B-1202 Prince Chhabra 11th January 2020 453 1-1003 Kiran Tandon TOTAL 15th January 2020 Amount Received (excluding TDS) 3138980 16 775530 233004 994267 26,50,40,424 Private How Delhi Abhishek Lin Document 12 WINTER HILL-77 PROJECT LIST OF CUSTOMERS WHO HAVE MADE PAYMENTS BUT NOT TAKEN POSSESSION Annexure 2 17 S. No. Customer Code Customer Name Unit No. Area Payment Received WHO-031 Anirudh Bhatnagar L-903 1,260 9.41.451.00 2 WHG-048 Sailesh Agrawal E-502 1,940 3,62,188.00 3 WHG-076 Seema Gupta J-404 1,515 9,27,522.00 4 WHG-087 L Saravanan J-703 1,515 14.49.317.00 WHG-088 M Animuthu J-704 1.515 9.81.666.00 B WHG-089 Pandi Sarananan J-803 1,515 9,80,075.00 7 WHG-090 Radhey Shyam Agrawal J-804 1,615 11,38.090.00 8 WHG-125 Sandeep Arora L-1402 1.615 11,11,093.00 D WHG-164 DEVIKA CHUGH C-1603 1.260 2.42.571.00 10 WHG-285 Neeraj Mathur K-601 1,260 4.61.374.00 11 WHG-317 Arvind Rana A-3....
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.... 19.11.2019 20 Ruchi Arora & Narinder Kumar Arora L-1201 19.11.2019 21 PSJ Estates (P) Lad H-804 26.11.2019 22 PSJ Estates (P) Ltd H-801 26.11 2019 23 Lalit lain K-604 26-11-2019 24 Ram Kishore Thakur & Madhubala Sharma J-503 26.11.2019 25 Rahul Dev 1-402 19.11.2019 Asha Anant Bagayatkar & Anant Arvind 26 Bagayatkar 1-304 27 Manish Kumar & Procti K-501 19.11.2019 19.11 2019 28 Dolly Kumari & Chandan Krishma C-1501 09 12 2019 219 Mukesh Kumar Gupta & Neelima Gupta L-1004 09.12.2019 30 Anu Bhangoo A-603 31 Pratima KR & Narendra UR K-201 21.11.2019 04.12.2019 32 Kapil Batra & Rashmi Yadav F-702 04 12.2019 33 Pooja Malhotra & Mukesh Malhotra A-403 04.12.2019 34 Sachin Sachdeva D-204 04.12.2019 35 Vineet Bhasin & Shashi Bhasin 1-204 04.12.2019 36 Surinder Singh Pruthi J-601 04.12.2019 37 Munish Kumar & Ankur Agarwal C-804 04.12.2019 38 Ishwer Chander D-101 04.12.2019 39 Ashok Srivastava & Mohini Srivastava G-303 04.12.2019 40 Vijay Kumar Sh....