# In the matter of Flat Buyer Welfare Association, vs. Dhingra Jardine Infrastructure Pvt. Ltd. & Ors.

> NCLAT judgment dated 2023-08-29. Citation: TCN-2023-NCLAT-00240. The appeal was filed against the order dated 16.09.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 29 Aug 2023
- **Citation:** TCN-2023-NCLAT-00240
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/flat-buyer-welfare-association-vs-dhingra-jardine-infrastructure-pvt-ltd-ors-6fb687a4

## Summary

### Background

The appeal was filed against the order dated 16.09.2022 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court-V), which admitted a Section 9 application filed by the Operational Creditor. The Operational Creditor claimed to be a contractor appointed by the Corporate Debtor, with total dues of Rs. 3,88,12,122/-. The Corporate Debtor did not file any reply or contest the proceedings. The appellants, Flat Buyer Welfare Associations, argued that the Corporate Debtor was unable to complete the construction, leading to complaints before the HRERA Authority. An order under Section 8 was passed on 15.03.2022, handing over the project to the appellants to complete. The appellants contended that the Corporate Debtor neither appeared before

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## Facts

The Operational Creditor filed an application under Section 9 of the IBC, claiming to be a contractor appointed by the Corporate Debtor with dues of Rs. 3,88,12,122/-. The Adjudicating Authority admitted the application. The Corporate Debtor did not file any reply or contest the proceedings. Flat Buyer Welfare Associations appealed, stating that the Corporate Debtor was unable to complete the construction, leading to complaints before the HRERA Authority. An order under Section 8 of the HRERA Act was passed on 15.03.2022, handing over the project to the Associations. The Associations claimed the Adjudicating Authority was unaware of the HRERA order when admitting the Section 9 application. The HRERA order directed the handover of towers to the Associations and

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 9 application without considering …

**Ratio:** The Adjudicating Authority is required to consider all relevant facts and circumstances

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**Reasoning:** The court reasoned that the Adjudicating Authority should have taken into account the

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**Interpretation:** This highlights the importance of the Adjudicating Authority's duty to conduct

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**Application:** In this case, the Adjudicating Authority's failure to consider the HRERA order

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Flat Buyer…
- **Respondents:** Dhingra Jardine…; Dhingra Jardine…
- **Advocates:** Rakesh…; Preeti Ka…; +4 more

## Timeline

- **2022-09-16 — Order by Adjudicating…**: Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court-V) passed…
- **2022-03-15 — HRERA Authori…**: HRERA Authority passed an order under Section 8, handing over the project to the…

## 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)

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