Uttar Pradesh Housing and Development Board Vs K.S.N. Buildwell Pvt Ltd & Anr. (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT) decided three connected appeals arising from the corporate insolvency resolution process (CIRP) of K.S.N. Buildwell Pvt. Ltd. The appeals concerned (i) an order directing de-sealing of land owned by the Uttar Pradesh Housing and Development Board (UPAVP), and (ii) an order remanding the approved resolution plan to the Committee of Creditors (CoC) for reconsideration.
UPAVP had allotted a commercial plot under a hire purchase arrangement. The Corporate Debtor (CD) was subsequently added as a joint allottee while ownership remained with the original allottee. Under the hire purchase agreement, the CD obtained possession, was required to pay instalments, could undertake construction, and was to receive a conveyance deed only after payment of all dues. The agreement also provided consequences for defaults, including recovery of dues and eviction.
The record showed that the CD defaulted in payment of instalments. UPAVP issued several notices regarding arrears, unauthorised construction, and demolition. The property was sealed on 27.08.2019 following proceedings under the Uttar Pradesh City Planning and Development Act, 1973, and was later confiscated on 20.07.2021. Subsequently, CIRP commenced against the CD, following which the Resolution Professional (RP) sought de-sealing of the property and approval of a resolution plan.
