TaxTMI 
TaxTMI 
2022 (6) TMI 925
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.... dated 16.01.2020 passed by the National Company Law Tribunal, Principal Bench, New Delhi (Adjudicating Authority) whereby the `Adjudicating Authority' had dismissed the CA No. 2265 (PB)/2019 in CP (IB) No.593(PB)/2018. 2. The twelve 'commercial space buyers' as seems from the details are the individual as depicted below: Mr. Alok Sharma S/o Mr. Vinod Kumar Sharma R/o1402, Govardhan Apartments, Kaushambi, Ghaziabad - 201 010 Mrs. Neelam Sharma W/o Mr. Vinod Kumar Sharma R/o1402, Govardhan Apartments, Kaushambi, Ghaziabad - 201 010 Mrs.Rashmi Singh W/o Mr. Rakesh Singh R/o 7B(HIG) Green View Apartments, Sec-99, Noida, UP-201 303 Through power of attorney holder namely Mr. Alok Sharma Mr. Ambika Prasad Yadav S/o Mr. late Jaskarn Yadav R/o B-1202, Apex Green Valley, Vaishali, Sector-9 Ghaziabad, UP-201 010 Through power of attorney holder namely Mr. Alok Sharma Mr. Arun Kumar Yadav S/o A.P Yadav R/o B-1202, Apex Green Valley, Vaishali, Sector-9 Ghaziabad, UP-201 010 Through power of attorney holder namely Mr. Alok Sharma Mrs. Prabha Jain W/o Mr. NMD Jain R/o House No. 179, 1st Floor Jagriti Enclave, Delhi -110 092 Through po....
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....ty etc. including non-registration of the sale deed (appearing at page 46 to page 90 of the Appeal paper book where emails are their). c. The Ld counsel for the Appellant has stated that not only they have released all the payment in respect of commercial spaces but even a few of the allottees have in fact also paid the registration charges for execution of the sale deed since 2015. The Allottees learnt about the CIRP of the CD and as soon as they learnt, they approach the IRP have correspondence with him also (appearing at Annexure 2 of the Appeal paper book). It was stated by the Appellant that the allottees were allowed possession in these units in 2015 without completion of certain auxiliary works and for which the allottees were repeatedly following up with the CD apart from registration issue. The Ld counsel for the Appellant has also stated that they have raised this issue in the meeting of the CoC of the CD for registration (appearing at Annexure A-3 of the Appeal paper book). d. The ld counsel of the Appellant has also stated that the RP used to maintain silence over the pendency of non-registration of sale deed in favour of such allottees without disputing that they w....
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....fer of ownership of a particular assets, the execution of sale deed is a sine qua non requisite and has cited the judgment of Hon'ble Apex Court in Narandas Karsondas Vs. S.A.Kamtam and Anr., (1977) 3 SCC 247 wherein it has been held that "a contract of sale does not of itself create any interest in, or charge on, the property etc". c. The Ld counsel has also stated that CoC has approved the Resolution Plan which is binding on the Appellants and at the same he has confirmed that it is yet to be approved by the Adjudicating Authority. The Ld counsel has also stated that the Appellant being minority Dissenting Financial Creditors do not have any locus standi to challenge the Resolution Plan as approved by the majority of the CoC which is affectedly sought to be done through the instant appeal and has cited the judgment of Hon'ble Apex Court in K.Sashidhar V. Indian Overseas Bank & Ors., (2019) 12 SCC 150. d. The Execution of sale deed shall be in violation to moratorium in terms of Section 14 of the Code. Apart from the other issues raised that the appeals have filed without authorization from the class of creditors and execution of sale deed amongst to preferential treatment etc....
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....r obtaining a copy of the decree or order appealed against. It is not open to a person aggrieved by an order under the IBC to await the receipt of a free certified copy under Section 420(3) of the Companies Act 2013 read with Rule 50 of the NCLT and prevent limitation from running. Accepting such a construction will upset the timely framework of the IBC. The litigant has to file its appeal within thirty days, which can be extended up to a period of fifteen days, and no more, upon showing sufficient cause. A sleight of interpretation of procedural rules cannot be used to defeat the substantive objective of a legislation that has an impact on the economic health of a nation." * Mr. Rursharan Singh Vs. The State Trading Corporation of India Ltd., CA(AT)(Ins) No. 853 of 2019, this Tribunal has observed as follows: "8. The argument that free copy was not served on the Appellant is not relevant. IBC does not have provision to serve free copies. Even if one is to rely on Section 421 (3) of the Companies Act, 2013, there is Judgment in the matter of "Sagufa Ahmad and Ors. Vs. Upper Assan Plywood Products Pvt. Ltd". passed by the Hon'ble Supreme Court of India in Civil Appeal Nos. 3....
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.... on the elaboration, it is imperative on the Tribunal to consider sympathetically and to help the weaker who are the buyers under the Real Estate Project and hence, the Appeal filed within 45 days seems to be in order. d. What the Respondent/RP has pointed out that the CD is the owner of the 'Commercial Space' and has accepted that the possession was with the Appellants admittedly. The Appellants are allottees of commercial space in 'Coral Brio'. Although the CD had handed over the possession of Commercial space to the Appellants, admittedly, no sale deed was executed by the CD in favour of allottees prior to the commencement of CIRP. e. What has been submitted by the Respondent /RP that it is settled position of law that a mere agreement to sell or possession over a property does not amount to ownership of that property. Section 54 of the Transfer of Property Act, 1882 defines sale as "Sale" is a transfer of Ownership in exchange for a price paid or promised or part-paid and part-promised. Further a joint reading of Sections 47, 48 and 49 of the Registration acts, 1908 makes it clear that the instrument which purports to transfer title of the property is required to be registere....
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....sferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; (c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; (d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. [Explanation.-For the purposes of this sub-section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, conce....
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....nd is an industrial company/manufacturing company then the impact of sale from such houses will appear in the 'Balance Sheet' of the Company as per Schedule-III Part-I-(II Assets) of the Companies Act, 2013 and any sale of this house by this industrial company, if it results into a profit or loss on the sale of such assets, then it will reflect to the extent of profit or loss on sale of this assets only in the profit and loss account under the heading " other income " and the cost value of the assets will be reduced from the assets side of the 'Balance Sheet'. For a clarity, let us see the following examples: i. In case of a real estate company - (Ram & Mohan Company), if House No. 'A' is sold to Mr. 'X' at a value of Rs. 20 lacs, the cost of construction of Rs. 15 lakhs then in the profit and loss account of the 'Ram & Mohan Company', sale of House will come in the income side of the profit and loss accounts as Rs. 20 lakhs-Revenue from operations. The materials etc. consumed will appear at Rs. 15 lakhs in the Part-II - profit and loss account of the same year under caption (Expenses-IV) if both start and completion of the house 'A' is in the same year. Otherwise, if it is compl....
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....." "173. We have also found that non-payment of dues of the Noida and Greater Noida Authorities and the banks cannot come in the way of occupation of flats by home buyers as money of home buyers has been diverted due to the inaction of Officials of Noida/ Greater Noida Authorities. They cannot sell the buildings or demolish them nor can enforce the charge against homebuyers/ leased land/ projects in the facts of the case. Similarly, the banks cannot recover money from projects as it has not been invested in projects. Homebuyers money has been diverted fraudulently, thus, fraud cannot be perpetuated against them by selling the flats and depriving them of hard-earned money and savings of entire life. They cannot be cheated once over again by sale of the projects raised by their funds. The Noida and Greater Noida Authorities have to issue the Completion/ Part Completion Certificate, as the case may be, to execute tripartite agreement and registered deeds in favour of the buyers on part- completion or completion of the buildings, as the case may be or where the inhabitants are residing, within a period of one month." j. This Tribunal has also held in Flat Buyer's Association Winter....