# 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-00095. 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-00095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sai-peace-and-prosperity-apartment-buyers-association-vs-ask-investment-managers-84314f52

## Summary

### Background

The case involves two appeals (Company Appeal (AT) (Insolvency) No. 252 of 2020 and Company Appeal (AT)(Ins) 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, Company Appeal (AT) (Insolvency) No. 252 of 2020 and Company Appeal (AT)(Ins) No. 315 of 2020, were filed against a common order dated 03 January 2020.
2. The Adjudicating Authority/National Company Law Tribunal, Division Bench, Chennai, passed the initial order in MA/1360/2019 & MA/1263/2019 in CP/938/IB/2018.
3. The appeals concern whether ASK Investment Managers Limited (ASK), Respondent No. 1, is a related party to the Corporate Debtor, Ambojini Property Developers Private Limited.
4. The Adjudicating Authority had directed the Resolution Professional to include ASK as a member of the Committee of Creditors (CoC) with voting rights proportionate to its claim.
5. Members of the Appellant Association (in Appeal No. 252 of 2020) are homebuyers of a

…

## Issues and analysis

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

**Ratio:** Section 5(24) of the Insolvency and Bankruptcy Code (IBC) defines 'related party' in

…

**Reasoning:** The NCLAT reasoned that ASK, through the Subscription and Shareholders Agreement (SSHA),

…

**Interpretation:** The interpretation of Section 5(24) focuses on the degree of influence and

…

**Application:** In this case, the NCLAT applied the definition of 'related party' to the

…

## 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…
- **2011-03-23 — Subscription and…**: SSHA entered into between ASK Investment Managers Private Limited (R1), Ambojini Property…

## 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)

---

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/sai-peace-and-prosperity-apartment-buyers-association-vs-ask-investment-managers-84314f52