# In the matter of Paras Builders and Promoters vs. ASREC India Ltd. & Ors.

> NCLAT judgment dated 2024-07-08. Citation: TCN-2024-NCLAT-00340. The appeal was filed against an order dated 02.02.2024, rejecting I.A. No. 380/2023 filed by…

- **Court:** NCLAT
- **Order date:** 8 Jul 2024
- **Citation:** TCN-2024-NCLAT-00340
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/paras-builders-and-promoters-vs-asrec-india-ltd-ors-a895d60c

## Summary

### Background

The appeal was filed against an order dated 02.02.2024, rejecting I.A. No. 380/2023 filed by the Appellant. An application was filed by the Bank of India under Section 7 against the Corporate Debtor, based on an Assignment Agreement dated 30.03.2022. ASREC was substituted and prosecuted the application, which the Adjudicating Authority admitted on 31.03.2023, appointing an Interim Resolution Professional. The Appellant filed an I.A. praying for recall of the admission order, which was rejected.

## Facts

Paras Builders and Promoters filed an appeal against an order dated 02.02.2024, rejecting I.A. No. 380/2023. The I.A. was filed by the Appellant seeking recall of the order admitting Section 7 application. Bank of India had filed an application under Section 7 of IBC against the Corporate Debtor based on an Assignment Agreement dated 30.03.2022. Subsequently, ASREC was substituted and prosecuted the application. The Adjudicating Authority admitted the Section 7 application on 31.03.2023 and appointed an Interim Resolution Professional. The Appellant argued that the Assignment Agreement was challenged in civil court and that the Financial Creditor should have impleaded the Appellant in the Section 7 application. The Appellant also claimed that an OTS was undertaken and

…

## Issues and analysis

### Issue 1: Whether the challenge to the Assignment Agreement in civil proceedings is a valid ground for …

**Ratio:** The submission of the Appellant that the Assignment Agreement is under challenge in the

…

**Reasoning:** The court reasoned that the civil proceeding challenging the Assignment Agreement does

…

**Interpretation:** The court interpreted that parallel proceedings in civil court do not supersede

…

**Application:** The court applied this principle to the specific facts, stating that the

…

## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Paras Builders…
- **Respondents:** ASREC (Indi…
- **Advocates:** Abhishek…; Karan K…; +3 more

## Timeline

- **2024-02-02 — Order Da…**: Order rejecting I.A. No.…
- **2022-03-30 — Assignment Agreement…**: Date of the Assignment Agreement…

## 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)

---

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/paras-builders-and-promoters-vs-asrec-india-ltd-ors-a895d60c