Bharti Goyal Vs Hector Realty Venture Pvt. Ltd. (NCLAT Delhi)
Material Facts
The appeal under Section 61(1) of the Insolvency and Bankruptcy Code, 2016 challenged the NCLT’s order dated 14.05.2024 dismissing an application seeking recall of the order dated 07.09.2022, by which the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor had been withdrawn. The appellants, homebuyers in the “Marvella City” project, contended that the CIRP withdrawal had been procured through fraud and suppression of material facts, excluding their claims and those of other similarly placed homebuyers. They asserted that although they had invested in the project and executed builder-buyer agreements, they were not informed of the CIRP, did not submit claims during the process, and were excluded from the settlement that led to withdrawal of the CIRP.
Procedural History
The Corporate Debtor was admitted into CIRP on 09.12.2019 under Section 7 of the Insolvency and Bankruptcy Code. An Interim Resolution Professional (IRP) issued a public announcement inviting claims. In September 2022, the IRP filed an application under Section 12A stating that no Committee of Creditors (CoC) had been constituted and seeking withdrawal of the CIRP based on settlement with seven financial creditors. The NCLT allowed the withdrawal on 07.09.2022. Subsequent appeals by the original financial creditors were withdrawn after settlement, while the present appellants were granted liberty by NCLAT to pursue appropriate remedies. The appellants thereafter filed recall applications before the NCLT, which were dismissed on 14.05.2024, leading to the present appeal.
