Dinesh Kumar Vs Narendra Kumar Sharma & Ors. (NCLAT Delhi)
NCLAT Delhi held that admitting application under section 7 of Insolvency and Bankruptcy Code, 2016 for initiation of CIRP for default in not completing project and handing over units within time justified.
Facts- The present appeals has been filed by the Suspended Directors of three Corporate Debtors (“CDs”) challenging the same order dated 19.07.2024 passed by National Company Law Tribunal, Court VI, New Delhi in admitting Application u/s. 7 of the Insolvency and Bankruptcy Code, 2016 filed by the Financial Creditors in a class and rejecting IA Nos.293 and 2497 of 2024 filed by the Corporate Debtor – M/s Mist Direct Sales Pvt. Ltd.
Conclusion- Held that reliance on Status Report submitted by Appellant(s) in a criminal proceeding can have no bearing while deciding Section 7 Application. The said Status Report is not an evidence on which it can be pronounced that threshold of 100 allottees was not complete in filing of Section 7 Application. We, thus, are of the view that submission raised by the Appellant(s) that threshold of 100 is not complete has no legs to stand and has to be rejected.
The present is a case of clear default of Appellant in not completing the Project and handing over the units within the time. Now, coming to the submission of the Appellant that large number of Intervenors are interested in completion of the Project by accepting one or other options submitted by the Appellant. The challenge in the Appeal is order of the Adjudicating Authority passed in Section 7 Application, which was initiated by allottees of the Corporate Debtors, we do not find any sufficient ground to interfere with the order passed by Adjudicating Authority under Section 7. It is not for this Tribunal to consider the mode and manner for completion of the Project at this stage. The steps shall be taken by Resolution Professional for completion of the Project in accordance with insolvency resolution process as per the IBC and Regulations.
