Disposed

In the matter of Sparkspell Homes Private Limited [Ia No.111 & 201-2022 in Cp (Ib) No.76-ALD-2019]

NCLT18 Sept 2023IA No.111 & 201-2022 in CP (IB) No.76-ALD-2019

Case brief

AI extract

What is this about?

The NCLT directed the Resolution Professional to consider and admit the applicant's claim for repurchased flats within two weeks. The court held that CIRP was properly triggered and found no valid ground to reject the claim based on malafidy, noting the applicant responded to queries. The order does not adjudicate the final merit of the claim.

What did the court decide?

Directed the Resolution Professional to consider and admit the claim within two weeks and pass a speaking order.

In the matter of Sparkspell Homes Private Limited [Ia… — Insolvency and Bankruptcy | NCLT (2023)

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IN THE NATIONAL COMPANY LAW TRIBUNAL ALLAHABAD BENCH, PRAYAGRAJ

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IA No.111/2022 & IA No.201/2022 IN CP (IB) No.76/ALD/2019

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In the matter of

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An application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016)

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IN THE MATTER OF:

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Geeti Bhagat ………… Applicant

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Versus

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Anuj Kumar Tiwari ……… RP/Respondent

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AND

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IN THE MATTER OF : Shri Deepak Gupta HUF ………… Financial Creditor

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Versus

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M/S Sparkspell Homes Pvt. Pvt. ……..Corporate Debtor

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Order pronounced on 18^th September, 2023

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Coram:

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Mr. Praveen Gupta. : Member (Judicial) Mr. Ashish Verma : Member (Technical) Appearances:

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Sh. Yash Tandon, Adv.

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: For the Respondent in IA NO.111/2022 & IA NO.201/2022 Sh. Yash Tandon, Adv.

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Page 1 of 7

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IA No.111/2022 & IA No.201/2022 IN CP (IB) No.76/ALD/2019

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Sh. Niraj Kumar Singh with Sh. Mrityunjay Mahendra, Advs. : For Applicant in IA NO.111/2022 & IA NO.201/2022

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ORDER

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IA No.111/2022

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This application has been filed seeking the following reliefs.

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i. That in view of the facts and circumstances enumerated herein above it is respectfully prayed that this Hon’ble Tribunal may kindly be pleased to condone the delay and direct the Resolution Professional to admit the claim of the applicant or else the applicant shall suffer irreparable loss and injury.

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ii. Interim order, if prayed for, pending final decision of the application, the applicant prays for the following interim relief: That this Hon’ble Tribunal may be pleased to direct the Resolution Professional/respondent to consider and admit the claim of the applicant.

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The case of the applicant is that the Corporate Debtor has launched a Group Housing Project known as “Pratham” located at Bijnor Road Lucknow and one Sri Deepak Gupta HUF through its Karta had filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016.

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The said Corporate Debtor was admitted in CIRP in terms of an order dated 28^th August, 2019 and accordingly, an Interim Resolution Professional was also appointed which was later

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Page 2 of 7 IA No.111/2022 & IA No.201/2022 IN CP (IB) No.76/ALD/2019

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on replaced by another Resolution Professional as per the resolution passed by the Committee of Creditors.

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It is alleged in the application that no paper publication was made by the Resolution Professional with respect to the CIRP initiated against the Corporate Debtor.

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The case of the applicant further is that it had entered into an agreement on 31^st March, 2014 with the Corporate Debtor for acquiring 18 flats in the said project and the copy of the said agreement has already been attached as Annexure No.4 with the application.

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As a part of the agreement vide its clause 5, the Corporate Debtor had undertaken to buy back the above 18 allotted flats on or before completion of 12 months from the commencement of the agreement with the stipulated total sum including the interest payable on monthly basis. The details of such payment due have been made in paragraph 14. Further the Corporate Debtor had handed over 16 cheques to the applicant in order to buy back the above flats out of which one cheque was not honored amounting to Rs. 5.0 crores and thereafter another agreement was executed on

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Page 3 of 7 IA No.111/2022 & IA No.201/2022 IN CP (IB) No.76/ALD/2019

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31^st March, 2015 wherein also the buyback arrangement was

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made and the cheques were issued which again bounced.

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The applicant on 10^th March, 2021 submitted its claim in FORM CA and an e-mail dated 8^th April, 2021 was received from the Resolution Professional thereby requiring certain documents and queries to be answered by the applicant. It is averred that the applicant duly replied to the Resolution Professional vide e-mail communication dated 5^th May, 2021, a copy of which also being attached as Annexure No.8.

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In this background the applicant submits that after giving the reply to the queries raised by the Resolution Professional, it has not received any further communication nor the claims have been considered by the Resolution Professionals.

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The application has been contested by the Resolution Professional thereby refuting the allegation of the applicant about the publication of the CIRP. It has been replied by the Resolution Professional that it is a matter of record that the IRP Mr. Mohit Maheswari had made public announcement on 31^st August, 2019 in Financial Express and on 1^st September, 2019 in Jan Satta. Since there was no complete information

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provided, therefore, certain information and queries were

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Page 4 of 7 IA No.111/2022 & IA No.201/2022 IN CP (IB) No.76/ALD/2019

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raised by the Resolution Professional as except for the agreement and the fact regarding bouncing of the cheques, no further information was supplied alongwith the claim submitted by the applicant.

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It is also alleged by the Resolution Professional that the applicant has taken mere recourse to recovery of the dues and the applicant is continuing with the process of recovery from the Directors despite advisory and therefore the present application deserves to be dismissed on the ground of malafidy as the same has been filed with the purpose of recovering dues and not with an intention to be part of the Resolution Process.

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The rejoinder has been filed by the applicant reiterating the points which have already made in the application.

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We have considered the rival submissions and the averments made in the application as well as reply and rejoinder and the oral submissions made by the Ld. Counsels representing the parties during the course of hearing.

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CIRP has been triggered against the Corporate Debtor in terms of the aforesaid order passed by this Tribunal and the due publications having been made by the then IRP in the

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Page 5 of 7 IA No.111/2022 & IA No.201/2022 IN CP (IB) No.76/ALD/2019

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newspapers on 31^st August, 2019 and 1^st September, 2019, therefore, it cannot be said that the applicant was not aware of the Corporate Debtor being under CIRP. However, we also find that after queries were raised by the Resolution Professional, the applicant had supplied some information and documents, on which however the Resolution Professional has not taken any final decision.

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In view of the foregoing discussions, we hereby direct that the claim lodged by the applicant be considered by the Resolution Professional within a time bound manner but not later than two weeks with regard to the admissibility of the claim, entitlement/eligibility of the claim in view of delay in filing the claim before the Resolution Professional and pass a speaking order in this regard which shall be communicated to the applicant forthwith thereafter. Our this order will however not be construed as an expression of merit or opinion whatsoever with respect to the adjudication of the claim of the applicant.

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IA No. 111/2022 stands disposed of accordingly.

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Page 6 of 7 IA No.111/2022 & IA No.201/2022 IN CP (IB) No.76/ALD/2019

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IA No.201/2022

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The applicant has also filed the IA No.201/2022 whereby the FORM CA has been sought to be amended which will also be looked into by the Resolution Professional while adjudicating the claim in

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terms of our aforesaid order.

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IA No.201/2022 also stands disposed off accordingly.

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(ASHISH VERMA) (PRAVEEN GUPTA) Member (Technical) Member (Judicial)

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Priya Agarwal (Stenographer)

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Page 7 of 7

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IA No.111/2022 & IA No.201/2022 IN CP (IB) No.76/ALD/2019

In the matter of Sparkspell Homes Private Limited [Ia No.111 & 201-2022 in Cp (Ib) No.76-ALD-2019]

Case brief

What is this about?

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In the matter of Sparkspell Homes Private Limited [Ia No.111 & 201-2022 in Cp (Ib) No.76-ALD-2019]

Case brief

What is this about?

What did the court decide?

What the court decided

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