# In the matter of ACRE - 81 Trust Through its trustee Assets Care & Reconstruction Enterprise Ltd. & Ors. vs. Pawan Kumar Goyal, IRP of SARE Realty Projects Private Ltd. & Ors.

> NCLAT judgment dated 2024-01-17. Citation: TCN-2024-NCLAT-00682. This appeal was filed by ACRE-81 Trust and others against an order dated 16.03.2023 passed by…

- **Court:** NCLAT
- **Order date:** 17 Jan 2024
- **Citation:** TCN-2024-NCLAT-00682
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/acre-81-trust-through-its-trustee-assets-care-reconstruction-enterprise-ltd-ors-ec26912d

## Summary

### Background

This appeal was filed by ACRE-81 Trust and others against an order dated 16.03.2023 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court II). The Adjudicating Authority had issued a show cause notice seeking an explanation from the Appellants as to why the penalty stipulated under Section 65 of the Insolvency and Bankruptcy Code, 2016 should not be imposed upon them. The initial application under Section 9 of the Code was filed by Dharam Vir Gupta against the Corporate Debtor, SARE Realty Projects Pvt. Ltd. The Corporate Debtor did not respond or appear, and the application was admitted ex-parte on 01.03.2021. The Adjudicating Authority appointed the IRP on 05.03.2021. The CoC met multiple times, discussing the liquidation of the

…

## Facts

Dharam Vir Gupta, an operational creditor, initiated CIRP against SARE Realty Projects Private Ltd. under Section 9 of the IBC. The Corporate Debtor failed to respond, leading to an ex-parte admission of the application on 01.03.2021. An IRP was appointed on 05.03.2021. The CoC convened multiple meetings, during which the liquidation of the Corporate Debtor was discussed. The Corporate Debtor's office was closed for over a year, and directors had resigned before CIRP commencement. The secured financial creditors had initiated action under the SARFAESI Act. In the fifth CoC meeting, 88.48% of the CoC members, including financial creditors in class (allottees/homebuyers), voted for liquidation. The IRP filed I.A. No. 3818 of 2021 for liquidation. The Adjudicating

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in invoking Section 65 of the Code for the …

**Ratio:** Section 65 of the Code can be invoked if the proceedings have been initiated with

…

**Reasoning:** The Adjudicating Authority has not given any reason for forming an opinion that it was a

…

**Interpretation:** Section 65 is interpreted to apply only when there is malicious intent for a

…

**Application:** In this case, the proceedings were initiated for liquidation, and there was no

…

## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** ACRE - 81 Trust…
- **Respondents:** SARE Realty…; Pawan Kumar Goyal…

## Timeline

- **2020-01-01 — Application under…**: Dharam Vir Gupta filed an application under Section 9 of the Code against the Corporate…
- **2021-03-01 — Ex-parte admission of…**: The Adjudicating Authority admitted the application ex-parte as the Corporate Debtor did…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/acre-81-trust-through-its-trustee-assets-care-reconstruction-enterprise-ltd-ors-ec26912d