Santosh Kumar Vs IDBI Trusteeship Services P. Ltd. & Anr. (NCLAT Delhi)
Summary: The National Company Law Appellate Tribunal, Principal Bench, New Delhi, disposed of competing applications concerning approximately 8.137 acres forming part of ATS Casa Espana Phase II, Mohali, during the pendency of an appeal against the admission of ATS Infrabuild Pvt. Ltd. into the corporate insolvency resolution process. Landowner Rajinder Singh sought intervention, exclusion of his land and the project from CIRP, and consequential relief. He contended that the joint development agreement dated 21.11.2017 and the accompanying power of attorney had been terminated before CIRP commenced on 04.03.2025, that the corporate debtor had accepted the termination and issued an NOC, and that no homebuyers’ rights existed over the land. The IRP sought directions restraining construction, interference and creation of third-party rights, together with possession-related and police-assistance reliefs.
The financial creditor and IRP opposed exclusion, submitting that the JDA and power of attorney were irrevocable, conferred development and mortgage rights on the corporate debtor, and could not be terminated unilaterally. They relied on the subsequent agreement dated 07.06.2022, under which the landowner transferred his 35% saleable-area share against stipulated consideration, including a guaranteed ₹150 crore share. They also maintained that the contractual construction period had not expired when termination was asserted in 2023 and that the purported NOC was conditional upon settlement of the proportionate lender exposure.
