# In the matter of Damont Developers Pvt. Ltd. Vs. Bank of Baroda & Anr. CA(AT)(Insolvency) 436-437-2019

> NCLAT judgment dated 2019-04-24. Citation: TCN-2019-NCLAT-00639. Damont Developers Pvt. Ltd. filed an appeal against the order of the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 24 Apr 2019
- **Citation:** TCN-2019-NCLAT-00639
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/damont-developers-pvt-ltd-vs-bank-of-baroda-anr-ca-ada2ed2a

## Summary

### Background

Damont Developers Pvt. Ltd. filed an appeal against the order of the Adjudicating Authority (National Company Law Tribunal), which rejected their Impleadment Application and admitted an application under Section 7 of the I&B Code filed by Bank of Baroda against the Corporate Debtor, M/s Brys Hotel Pvt. Ltd. The appellant claimed to have purchased 'Hotel Brys Fort, Jaisalmer', one of the chain hotels of the Corporate Debtor, and is in possession of the hotel for the last three years. The appellant sought to be impleaded in the proceedings initiated by Bank of Baroda.

## Facts

Damont Developers Pvt. Ltd. (Appellant) claimed to have purchased 'Hotel Brys Fort, Jaisalmer', part of the Corporate Debtor M/s Brys Hotel Pvt. Ltd., and is in possession for three years. Bank of Baroda (Respondent) filed a petition under Section 7 of the I&B Code against the Corporate Debtor. The Adjudicating Authority rejected the Appellant's Impleadment Application and admitted the Bank of Baroda's application. The Appellant filed an appeal challenging these orders. The grievance of the Appellant is that the Adjudicating Authority by impugned order dated 4th February, 2019 rejected the Impleadment Application filed by the Appellant and by subsequent order dated 18th March, 2019 admitted the application under Section 7. The relevance of the fact is that the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Appellant's Impleadment Application and …

**Ratio:** The Adjudicating Authority is required to determine if a debt and default exist before

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**Reasoning:** The appellate tribunal relied on the Supreme Court's decision in 'Innoventive Industries

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**Interpretation:** This means that the Adjudicating Authority's primary duty is to ascertain the

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**Application:** In this case, the appellate tribunal found that the admission order did not

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Damont Developers…
- **Respondents:** M/s Brys Hotel…; Bank of B…

## Timeline

- **2019-02-04 — Adjudicating Authority…**: The Adjudicating Authority rejected the…
- **2019-03-18 — Adjudicating Authority…**: The Adjudicating Authority admitted the application under Section 7 of the I&B Code filed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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