AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (4) TMI 951
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Mr. Rohit Kumar Singh, Ms. Shweta Priyadarshini, Ms. Nishi Singh and Ms. Bhagwati, Advocates in I.A. Nos.1120 & 1964/2026. Mr. Kaushik Chatterjee and Ms. Samridhi, Advocates in I.A. No.1494/2026. Ms. Pranjal Mishra and Ms. Ishita Singh, Advocates in I.A. No.1606/2026. Mr. Sahil Sethi, Ms. Arushi Mann, Mr. Vikash Kumar and Mr. Samriddh Bindal, Advocates in I.A. Nos. 335 & 340/2026. Mr. Aaditya Vijaykumar and Mr. Naman Garg, Advocates in I.A. No. 261/2026. Mr. Sunil Fernandes, Ms. Nishi Chaudhary, Mr. Yashartha Gupta and Mr. Kamlesh Ram, Advocates in I.A. No.6312/2025. Mr. Gautam Pal, Advocate in I.A. No. 7495/2025. Ms. Prerna Sharma and Mr. Sunny Vashisht, Advocates in I.A. No. 6773/2025. Mr. Sahil Grewal, Advocate in I.A. No. 6316/2025. Mr. Mani Bhushan Sinha, Advocate in I.A. No.575/2026. Mr. Shashak Pathak, Advocate in I.A No. 1874/2026. Mr. Siddhant Jaiswal, Advocate in I.A. No. 823/2026. Mr. Ketan Madan, Advocate in I.A. Nos. 7528, 7531 to 7540, 7664 - 7665, 7801, 7910, 7911 - 7913/2025 & 1311, 1313 & 1586/2026 Mr. Priyam Kamra and Mrs. Pranjeet Kaur, Advocates in I.A. No.976/2026. Mr. Sajal Jain, Advocate in I.A. Nos. 5948/2025, 62....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nitholders, financial creditor in a class, Company Petition on 28.02.2025, alleging a default on the part of corporate debtor. vii. Under Part IV of the application, total amount of debt was claimed giving details of each financial creditor having paid the amount, for example, Shravan Minocha - R-1, who was allotted Unit D 2 - 3005 had paid an amount of Rs.14,14,169/-. Total amount claimed was mentioned in Part IV. viii. Financial creditor in a class has pleaded in their application that they were allotted units in a Project namely "Raheja Krishna Housing Scheme" situated in Sector 14 after obtaining license from DTCP which Project is also registered with the RERA as Registration No.21/2017. Details of the amount paid by all the applicants was mentioned. ix. It was pleaded that as per Clause 4.5 of the Agreement to sell failure or delay in payment of instalment, corporate debtor was to charge 15% interest per annum. It was pleaded that corporate debtor was obliged to deliver possession of the units by 10.06.2019, in which corporate debtor miserably failed. x. Adjudicating authority issued notice in Section 7 application. The corporate debtor appe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rporate debtor in view of outstanding financial debt in default above the pecuniary threshold limit as provided under Section 4 of the Code, 2016. Further, there is no dispute with regard to debt and there has been clear acknowledgement with respect to debt due by the Corporate Debtor. As a sequel to the above discussion and in terms of Section 7(5)(a) of the Code, the instant petition I.B./284/2025 stands admitted and CIRP of M/s. Raheja Developers Ltd. shall be initiated." xv. Adjudicating authority further noticed in paragraph 19 that on an application filed by Vipul Jain & Ors., the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor has commenced by order dated 19.11.2024, which order was challenged before this Tribunal and this Tribunal by order dated 21.11.2024 directed that insolvency proceedings shall be confined to one Project namely Raheja Shilas (Low Rise). Paragraph 19 of the judgment is as follows: "19. It is further placed on record that the Adjudicating Authority, in the matter of Vipul Jain & Ors. v. M/s Raheja Developers Limited, ((IB) No. 239(PB)/2023), admitted a petition under Section 7 of the Insolvency and Bankruptcy ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rporate debtor giving the details of amount to be refunded to the respondents herein. xviii. Appeal was again taken on 02.09.2025, where counsel for the respondent submitted that they are substantially in agreement with the amount given in the affidavit but the amount should be paid through Resolution Professional (RP). On 02.09.2025, this Tribunal passed following order: "1. In pursuance of the earlier order dated 21.08.2025 an affidavit has been filed on behalf of the appellants. Learned counsel appearing for the respondent Mr. Manu Chaturvedi, submits that affidavit has been received and the respondents substantially are in an agreement with a amount given along with the affidavit. He submits that however the RP who has been appointed may be a tasked to ensure the payments as proposed by the appellant. 2. As far as the present respondent who have expressed their willingness to accept the offer by the appellant it shall be open for the RP to see that payments as contemplated by the that appellant are made. However, it is submitted that publications have already been made in pursuance of the impugned order the claim shall be collated but no Committee of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cial Creditors apart from financial creditor in a class in the CIRP whose interest has also to be considered. Ld. Counsel for the Appellant is permitted to make submissions and cite the relevant judgments on the subject. We make it clear that we need to first examine and decide the issue before proceeding with other intervention applications filed and pending with this appeal. List this appeal on 17th March, 2026 at 02:00 PM. Ld. Counsel for the Appellant, Applicants, Financial Creditors and other Intervenors are permitted to file their three pages short notes of submissions alongwith relevant judgments before the next date. We permit Ld. Counsel to file physical copy of intervention applications which has not yet been filed within a week. Other pending applications in this appeal in which defects are cured shall also be listed on the next date. Interim order to continue" 3. We have heard learned Sr. counsels Mr. Abhijeet Sinha and Mr. P. Nagesh appearing for the appellants, learned counsel Mr. Manu Chaturvedi appearing for the Respondents No. 1 to 130, learned counsel Mr. Abhishek Anand appearing for the Interim Resolution Profession....
X X X X Extracts X X X X
X X X X Extracts X X X X
....wn proceedings. 5. Learned Sr. counsel, Mr. Abhinav Vashisht appearing for the Edelweiss Asset Reconstruction Company relied on two applications being I.A. No.6992/2025 and I.A.No.1316/2026. Mr. Vashisht submits that Edelweiss Asset Reconstruction Company has taken assignment from L&T Infrastructure Finance Limited. Appellant has filed its claim in 'Form-C' before the IRP. Earlier proceeding under Section 7 were initiated which were withdrawn on 05.12.2023 by a settlement. It is submitted that several Term Loan and finances have been given by financial creditor, being Term Loan I to Term Loan IX. It is submitted that although certain Term Loans is with respect to project specific but Term Loans also included working capital requirement. It is submitted that most of the projects launched by the corporate debtor are in bad shape and are not completed, hence it is appropriate that CIRP be continued against the corporate debtor to resolve the all projects of the corporate debtor. 6. Learned counsel for the PNB in support of the application submits that Bank is opposed to any settlement by the appellant with R-1 to R-130 who had initiated Section 7 application. It is submitted tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the Project "Raheja Krishna Housing Scheme". It was held by the adjudicating authority that Project falls under Affordable Housing Policy 2013, hence possession was to be given within 48 months i.e., by 10.06.2019. In paragraphs 13 and 15 of the judgement, following has been held: "13. It is submitted that the project in question is namely "Krishna Housing Scheme", an Affordable Group Housing Colony Project on land admeasuring 10 acres in Sector -14, Sohna, Gurugram (Haryana) under Affordable Group Housing Scheme. The project qualifies under the Pradhan Mantri Awas Yojna and Rinn Yojna. It comprises of a total of 11 towers with flat configurations of 1-2 BHK consisting of a total of 1644 units plus commercial units integrated with retail complex and, all basic amenities, etc. 15. That since the Project falls under the Affordable Housing Policy, 2013, the Corporate Debtor was obligated to complete the Impugned Project and offer possession to the Applicants within 48 months, either from the date of environmental clearance dated 09.03.2015 or the date of sanction of building plans dated 10.06.2015. Accordingly, the Corporate Debtor was required to complete the Projec....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ancial Creditor in a class claimed allotment. 15. When the Appeal was heard, this Tribunal on 21.11.2024 passed an order, where in Paragraph 3, following was observed: "3. The submission which has been raised by the Counsel for the Appellant is that the Applicants who had filed Section 7 Application relates to only Project `Raheja Shilas (Low Rise)' situated at Sector 109, Gurugram, Haryana and they had themselves prayed to the Adjudicating Authority to commence the insolvency with regard to the Project to which the Applicants were concerned." 16. There is no dispute between the parties that the CD has launched various projects apart from project Raheja Shilas (Low Rise). Various IAs have been filed in the present Appeal by allottees of different projects seeking directions with regard to other projects of the CD. The question, which needs to be answered in the present case is as to whether, the CIRP ought to have been confined only to the project Raheja Shilas (Low Rise). In a recent judgment of this Tribunal decided on 07.01.2026 in Company Appeal (AT) (Insolvency) No. 500 of 2025 in Gagan Tandon & Ors. vs. IL&FS Financial Services Ltd. & Ors., the ques....
X X X X Extracts X X X X
X X X X Extracts X X X X
....udicial approach in this regard will have farreaching benefits: protecting homebuyers, restoring confidence in the real estate market, and encouraging reputed business houses and conglomerates to participate in residential development. In taking this approach, this Court seeks to contribute towards cleansing and strengthening a core economic sector that sustains millions of livelihoods in both the organised and unorganised economy and touches the lives of people at their most fundamental level."" 17. In the above judgment, an earlier judgment of this Tribunal in Company Appeal (AT) (Ins.) No. 926 of 2019 - Flat Buyers Association Winter Hills - 77, Gurgaon vs. Umang Realtech Pvt. Ltd. through IRP & Ors. was noticed. In Paragraph 85, 86 and 87, following was held: "85. The above Regulations, even after amendments as noted above, throw very little light over the complexities and difficulties, which arise in the resolution of the real estate project, undertaken by a real estate Company. There have been several precedence of this Tribunal, where this Tribunal had occasion to consider the resolution of a real estate project. The judgment of this Tribunal in Company App....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... creditors are different for such separate 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 compan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y. We, thus, are satisfied that the impugned order needs to be modified, confining the CIRP to the project Raheja Shilas (Low Rise) only." 14. In addition to the above consideration by the Tribunal in judgement dated 28.03.2026, we also need to refer to judgement of the Hon'ble Supreme Court in 'Mansi Brar Fernandes' (supra), in which case Hon'ble Supreme Court while dealing with insolvency of a Real Estate Company had issued various directions. It is useful to notice paragraphs 15.5, 21.2(5) & 21.2(6) of the judgement, which are as follows: "15.5. A balanced judicial approach in this regard will have far- reaching benefits : protecting homebuyers, restoring confidence in the real estate market, and encouraging reputed business houses and conglomerates to participate in residential development. In taking this approach, this court seeks to contribute towards cleansing and strengthening a core economic sector that sustains millions of livelihoods in both the organised and unorganised economy and touches the lives of people at their most fundamental level." "21.2. In exercise of this court's jurisdiction, and to advance the constitutional and statutory objecti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Project "Krishna Housing Scheme" of the corporate debtor. 17. In the judgement of this Tribunal in Comp. App. (AT) (Ins.) No.2168/2024, this Tribunal while disposing the application had issued following directions in paragraph 23: "23. In view of our foregoing discussions and conclusions, we dispose of the Appeal in following manner: (A) The order dated 19.11.2024 passed by Adjudicating Authority in (IB) No.239(PB)/2023 is modified to the extent that CIRP against the CD shall confine to its project Raheja Shilas (Low Rise) only. (B) The IRP to proceed further in the CIRP including updation of the creditors claim in accordance with law. The payments to Financial Creditor in a class in pursuance of the order passed by this Tribunal, if any, shall be duly reflected in updation of the claim. (C) The Financial Creditors in a class and Financial Institutions with respect to other projects of the CD, are free to prosecute their independent proceedings against other projects of the CD, which shall proceed in accordance with law unaffected by initiation of CIRP by the impugned order with respect to project Raheja Shilas (Low Rise). (D) Liberty....