# In the matter of Rajendra K Bhuta Vs Maharashtra Housing & Area Development Authority (MHADA) CA (AT) No. 119-2018

> NCLAT judgment dated 2018-07-12. Citation: TCN-2018-NCLAT-00210. This is a Company Appeal (AT) (Insolvency) No. 119 of 2018 before the National Company Law…

- **Court:** NCLAT
- **Order date:** 12 Jul 2018
- **Citation:** TCN-2018-NCLAT-00210
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajendra-k-bhuta-vs-maharashtra-housing-area-development-authority-1fb342f1

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 119 of 2018 before the National Company Law Appellate Tribunal (NCLAT) New Delhi. The appeal concerns a resolution plan approved by the Committee of Creditors related to a Corporate Debtor and land belonging to Maharashtra Housing & Area Development Authority (MHADA). The Adjudicating Authority has not yet reviewed the resolution plan to determine its compliance with Section 30(2) of the Insolvency and Bankruptcy Code (I&B Code).

## Facts

Rajendra K. Bhuta is the Resolution Professional in this case. The Maharashtra Housing & Area Development Authority (MHADA) is a party involved, owning the land in question. A resolution plan has been approved by the Committee of Creditors. This plan pertains to land belonging to MHADA, which was previously allotted to the Corporate Debtor for development. The Adjudicating Authority has not yet reviewed the resolution plan for compliance with Section 30(2) of the I&B Code. A development agreement between MHADA and the Corporate Debtor has been cancelled. The court directed the Resolution Professional to place the approved resolution plan before the Adjudicating Authority for verification and appropriate order under Section 31 of the I&B Code.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to decide on the legality and proprietary …

**Ratio:** The Appellate Tribunal (NCLAT) holds that the Adjudicating Authority does not have the

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**Reasoning:** The NCLAT reasons that such a question can only be decided by a Court of competent

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**Interpretation:** This clarifies the scope of the Adjudicating Authority's powers under the

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**Application:** The Adjudicating Authority is directed not to deliberate on the issue of the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Rajendra K.…
- **Respondents:** Maharashtra…; Maharashtra…
- **Advocates:** A.K. S…; Ashish…; +4 more

## Timeline

- **2018-05-31 — Order Da…**: Liberty granted to the ‘Resolution Professional' to submit all the ‘resolution plans'…
- **2018-07-12 — Appearan…**: Mr. Arun Kathpalia, learned Senior Advocate along with Mr. Chirag Shroff appeared on…

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