# Uttar Pradesh Housing and Development Board vs. K.S.N. Buildwell Pvt. Ltd. and Jayanti Jain

> NCLAT judgment dated 2026-07-14. Citation: TCN-2026-NCLAT-00231. Uttar Pradesh Housing and Development Board (UPAVP) allotted a commercial plot to Ramesh…

- **Court:** NCLAT
- **Order date:** 14 Jul 2026
- **Citation:** TCN-2026-NCLAT-00231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/uttar-pradesh-housing-and-development-board-vs-ksn-buildwell-pvt-ltd-and-jayanti-vqbon

## Summary

### Background

Uttar Pradesh Housing and Development Board (UPAVP) allotted a commercial plot to Ramesh Kumar Prasad, later joined by K.S.N. Buildwell Pvt. Ltd. (Corporate Debtor) under a hire purchase agreement. Due to payment defaults and unauthorized construction, UPAVP sealed and confiscated the property prior to the initiation of Corporate Insolvency Resolution Process (CIRP) against K.S.N. Buildwell Pvt. Ltd. Omkara Assets Reconstruction Company Ltd. initiated CIRP. A resolution plan was submitted by Bhati Associates and approved by the Committee of Creditors (CoC), but UPAVP objected to its inclusion of third-party property (the land). The Adjudicating Authority remanded the resolution plan back to the CoC for reconsideration and also ordered the de-sealing of the property.

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## Facts

Uttar Pradesh Housing and Development Board (UPAVP) allotted commercial plot No. 16/Com-1 (6860.959 sq. m) in Vasundhara Ghaziabad to Mr. Ramesh Kumar Prasad on 23.12.2006.

An allotment letter was issued on 11.04.2008 for Rs. 256,267,693/-, with 50% payable by 30.03.2009 and the remaining 50% in 72 monthly installments with 18% p.a. interest.

On 24.03.2010, K.S.N. Buildwell Pvt. Ltd. (Corporate Debtor) was added as a joint allottee upon request, with the original allottee's ownership remaining intact.

UPAVP, Ramesh Kumar Prasad, and the Corporate Debtor entered into a hire purchase agreement on 30.03.2010, requiring quarterly installments of Rs. 17,077,230/- from 01.01.2010, with 24% p.a. interest on default.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in directing the de-sealing of the property, given …

**Ratio:** The Adjudicating Authority erred in directing de-sealing of the property as the sealing

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**Reasoning:** The property was sealed on 27.08.2019 and confiscated on 20.07.2021, while CIRP commenced

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**Interpretation:** Section 14 of the IBC imposes a moratorium but does not revive rights that were

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**Application:** The Adjudicating Authority's order dated 17.10.2023, which directed de-sealing,

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## Parties

- **Judges:** Mohd. Faiz Alam…; Naresh Salecha…; +1 more
- **Appellants:** Uttar Pradesh…; K.S.N. Buildwell…; +4 more
- **Respondents:** K.S.N. Buildwell…; Ramesh Kumar…; +1 more
- **Other parties:** Committee of…; 144 flat…; +2 more
- **Advocates:** Rana Mukherjee…; Ritesh Ag…; +14 more

## Timeline

- **2006-12-23 — Plot Allo…**: Uttar Pradesh Housing and Development Board (UPAVP) allotted commercial plot No. 16/Com-1…
- **2008-04-11 — Allotment Lett…**: Allotment letter issued for the plot,…

## 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)

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