# In the matter of Sanskriti Allottee Welfare Association & Ors. vs. Gaurav Katiyar & Ors.

> NCLAT judgment dated 2024-07-19. Citation: TCN-2024-NCLAT-00310. The appeal arises from an order dated 14.06.2023 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 19 Jul 2024
- **Citation:** TCN-2024-NCLAT-00310
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sanskriti-allottee-welfare-association-ors-vs-gaurav-katiyar-ors-98894ca6

## Summary

### Background

The appeal arises from an order dated 14.06.2023 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench-III) in I.A. No. 1146/2022 and I.A. No. 3234/2023 in C.P. (IB) No. 1348/ND/2019. The Adjudicating Authority dismissed IA No. 1146 of 2022 filed by the Appellants (Home Buyers) as infructuous and allowed I.A. No. 3234 of 2023 filed by the Resolution Professional (RP), granting the RP liberty to take necessary steps regarding the payment of maintenance charges, including electricity charges. The Appellants-Home Buyers are aggrieved by this order.

## Facts

Earthcon Infracon Pvt. Ltd., the Corporate Debtor, was developing a residential project named 'Sanskriti'. In 2019, CIRP was initiated against the Corporate Debtor. The Resolution Professional (RP) was appointed to manage the Corporate Debtor's operations. Home Buyers in the 'Sanskriti' project were paying maintenance fees. There was an outstanding electricity bill payable to Noida Power Corporation Limited (NPCL). The Committee of Creditors (CoC) resolved on 21.01.2022 to increase the maintenance rate from Rs. 1 to Rs. 2 per sq. ft. plus GST to cover electricity charges. The Appellants (Home Buyers) filed IA No. 1146/2022 challenging this increase. The RP filed IA No. 3234/2023 seeking permission to disconnect electricity to non-paying residents. The Adjudicating

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in allowing the Resolution Professional (RP) to take …

**Ratio:** The RP has the responsibility to run the Corporate Debtor as a going concern and to take

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**Reasoning:** The NCLAT reasoned that the RP had correctly placed the issue of maintenance charges and

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**Interpretation:** This interpretation emphasizes the importance of the RP's role in managing the

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**Application:** The NCLAT applied this reasoning to the specific facts of the case, finding

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Sanskriti…
- **Respondents:** Earthcon Infracon…; Gaurav Ka…

## Timeline

- **2019-01-01 — CIRP Init…**: Corporate Insolvency Resolution Proceedings (CIRP) initiated against Earthcon Infracon…
- **2022-01-21 — CoC Meet…**: Committee of Creditors (CoC) resolved to increase the maintenance rate from Rs. 1 to Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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