# In the matter of Sai Peace and Prosperity Apartment Buyers Association Vs. ASK Investment Managers P Ltd & Ors. Company Appeal (AT) (Ins) No. 252 of 2020

> NCLAT judgment dated 2021-09-20. Citation: TCN-2021-NCLAT-00092. The case involves two appeals (Company Appeal (AT)(Insolvency) No. 252 of 2020 and Company…

- **Court:** NCLAT
- **Order date:** 20 Sept 2021
- **Citation:** TCN-2021-NCLAT-00092
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sai-peace-and-prosperity-apartment-buyers-association-vs-ask-investment-managers-0c0fc0ec

## Summary

### Background

The case involves two appeals (Company Appeal (AT)(Insolvency) No. 252 of 2020 and Company Appeal (AT)(Insolvency) No. 315 of 2020) arising from a common order dated 03 January 2020 passed by the Adjudicating Authority/National Company Law Tribunal, Division Bench, Chennai. The core issue revolves around whether ASK Investment Managers Limited (ASK), the Respondent No. 1, should be considered a related party to the Corporate Debtor, Ambojini Property Developers Private Limited, and consequently, whether it is eligible to be part of the Committee of Creditors (CoC). The appeals challenge the Adjudicating Authority's decision to allow ASK to be a member of the CoC with voting rights proportionate to its claim against the Corporate Debtor.

## Facts

1. Two appeals were filed against a common order by the NCLT Chennai.
2. The core issue is whether ASK Investment Managers Limited (ASK) is a related party to Ambojini Property Developers Private Limited (Corporate Debtor) and eligible to be part of the Committee of Creditors (CoC).
3. The Adjudicating Authority allowed ASK to be a member of the CoC.
4. Appellant Association members are homebuyers; the Corporate Debtor was to complete a project by Dec. 2018, but defaulted on payments.
5. A member of the Appellate Association filed claims before RP as an Operational Creditor, triggering CIRP.
6. AA/NCLT, Chennai admitted Application u/s 9 of IBC, 2016.
7. V S Suresh, Corporate Debtor's Promoter and Shareholder, along with 'Real Value Promoters Private Limited' and landowners,

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## Issues and analysis

### Issue 1: Whether Applicant/Respondent No.1 (M/s ASK Investment Managers Limited) is a related party in terms …

**Ratio:** The legal principle is that a related party to the Corporate Debtor is ineligible to be

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**Reasoning:** The tribunal reasoned that ASK had a substantial interest in the operations of the

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**Interpretation:** The interpretation of Section 5(24) focuses on whether ASK, through its actions

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**Application:** The tribunal applied the legal principle and its interpretation of Section

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## Parties

- **Judges:** A.I.S. C…; V. P. S…
- **Appellants:** Sai Peace and…
- **Respondents:** Ambojini Property…; ASK Investment…

## Timeline

- **2020-01-03 — Common O…**: Common Order passed by the Adjudicating Authority/National Company Law Tribunal, Division…
- **2013-03-23 — Subscription and…**: Subscription and Shareholder's Agreement' dated 23 March 2011 (“SSHA”) entered into…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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