# In the matter of Rajan Garg vs. Chief Executive Officer & Ors.

> HC judgment dated 3 Apr 2024. Citation: TCN-2024-HC-00109. The petitioner, Rajan Garg, acting as the Resolution Professional (RP) for Truly Creative…

- **Court:** HC
- **Order date:** 3 Apr 2024
- **Citation:** TCN-2024-HC-00109
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/gauhati-high-court-kohima/rajan-garg-vs-chief-executive-officer-ors-96a2447b

## Summary

### Background

The petitioner, Rajan Garg, acting as the Resolution Professional (RP) for Truly Creative Developers Pvt Ltd, filed a writ petition seeking to stay an acquisition process initiated under the Slum Rehabilitation Act, 1995. Truly Creative, a corporate developer, had failed to implement a slum redevelopment scheme despite being issued a Letter of Intent (LoI) as early as 1995 and a revised LoI in 2003. The developer's appointment was eventually terminated by an order of the Apex Grievance Redressal Committee (AGRC) on 25th October 2019, due to its consistent failure to perform and allegations of illegalities, including trafficking in rehab tenements.

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## Facts

Rajan Garg, the Resolution Professional (RP) for Truly Creative Developers Pvt Ltd, filed a writ petition seeking to stay an acquisition process under the Slum Rehabilitation Act, 1995. The developer, Truly Creative, is described as a corporate entity with a history of failing to perform in multiple projects, leading to allegations of illegalities.

The plot in question, CTS Nos 87, 87/1 to 87/3 of Village Magathane, Taluka Borivali (East), spans over 14,000 sq mts. Truly Creative purchased this plot on 21st March 1997, but its name is not yet on the property card. A Letter of Intent (LoI) for slum redevelopment was issued to the developer even before it became the owner, on 5th December 1995.

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## Issues and analysis

### Issue 1: Whether the moratorium declared under Section 14 of the Insolvency and Bankruptcy Code, 2016, can…

**Ratio:** The provisions of the Insolvency and Bankruptcy Code, 2016, and the moratorium under…

**Reasoning:** The court reasoned that the provisions of the IBC, particularly the moratorium under…

**Interpretation:** The court interpreted Section 14 of the IBC in the context of its overall…

**Application:** Applying this interpretation, the court found that the RP's argument that the…

## Parties

- **Judges:** G.S.P…; Kamal K…
- **Other parties:** gauhati-high-court…; Kohi…
- **Advocates:** For the Petitioner…; i/b Vidhii…; +4 more

## Timeline

- **December 5, 1995 — Initial LoI…**: A Letter of Intent (LoI) for slum redevelopment was issued to Truly Creative Developers…
- **March 21, 1997 — Plot Pur…**: Truly Creative Developers Pvt Ltd bought…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 13(2) — Declaration of moratorium and public…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-13)

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