Amit Jain Vs IDBI Trusteeship Services Limited & Anr (NCLAT Delhi)
NCLT Delhi held that insolvency of real-estate project is to be held project-specific. Accordingly, order set aside and matter revived before Adjudicating Authority to consider section 7 petition afresh.
Facts- The present appeals have been filed against the order dated 05.08.2025 passed by National Company Law Tribunal. By the impugned order, the Adjudicating Authority has admitted Section 7 petition filed by IDBI Trusteeship Services Ltd. against the Corporate Debtor (“CD”) – Mahagun (India) Pvt. Ltd. Aggrieved by the above order, these Appeal(s) have been filed.
Conclusion- Hon’ble Supreme Court in Mansi Brar Fernandes vs. Shubha Sharma – Civil Appeal No.3826 of 2020 decided on 12.09.2025, where the Hon’ble Supreme Court has directed that insolvency of real-estate project is to be held project-specific.
Held that in view of the law laid down by the Hon’ble Supreme Court in Mansi Brar Fernandes, which require resolution of real-estate insolvency should, as a result, proceed on a project-specific basis and all relevant material with regard to other project and its status as well as different intervention applications filed by homebuyers of different projects have been brought on record, we are of the view that Adjudicating Authority is required to advert to these facts and law laid down by the Hon’ble Supreme Court in Mansi Brar Fernandes and has to advert to the question as to whether the CIRP should be confined to the current project or encompass all the projects. Thus, held that Adjudicating Authority needs to consider Section 7 petition afresh, taking into consideration the directions issued by the Hon’ble Supreme Court in Mansi Brar Fernandes as well as Status Report, which has been brought on the record.
