# In the matter of Ascot Projects Pvt. Ltd. IA-739(ND)2021 in (IB) 2356 (ND) -2019

> NCLT judgment dated 2021-07-23. Citation: TCN-2021-NCLT-01634. The case involves an application filed under Section 60(5) read with Section 65 of the…

- **Court:** NCLT
- **Order date:** 23 Jul 2021
- **Citation:** TCN-2021-NCLT-01634
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ascot-projects-pvt-ltd-ia-739nd2021-in-ib-2356-nd-2019-55c96054

## Summary

### Background

The case involves an application filed under Section 60(5) read with Section 65 of the Insolvency & Bankruptcy Code, 2016. Airwil Infra Ltd initiated a Section 7 petition against Ascot Projects Pvt Ltd. Airwil Intellicity Social Welfare Society, representing the majority of unit holders/creditors of Intellicity Business Park Pvt Ltd, sought to intervene in the proceedings. The applicant society also requested the rejection of Airwil's Section 7 petition and the imposition of a penalty on Airwil's directors, alleging a fraudulent attempt to defeat the ongoing CIRP of Intellicity.

## Facts

Airwil Infra Ltd initiated a Section 7 petition against Ascot Projects Pvt Ltd, the Corporate Debtor. Airwil Intellicity Social Welfare Society, representing the majority of unit holders/creditors of Intellicity Business Park Pvt Ltd, filed an application to intervene in the proceedings. Intellicity Business Park is undergoing a separate CIRP since 27.05.2019. The applicant society alleged that Airwil's Section 7 petition was a fraudulent attempt to defeat the ongoing CIRP of Intellicity. The ex-directors of Intellicity, who are also directors of Airwil, initiated the proceedings against Ascot with malicious intent. Ascot is a 100% owned subsidiary of Intellicity. The Resolution Plan of Intellicity has been approved by the CoC and is pending for approval before the

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## Issues and analysis

### Issue 1: Whether the Applicant Society representing majority of Unit Holders/Creditors of Intellicity …

**Ratio:** Section 7 of the IBC, 2016, outlines the procedure for initiating the corporate

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**Reasoning:** The Adjudicating Authority noted that the applicant filed the application under Section

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**Interpretation:** Section 7 of the IBC, 2016, specifies that the corporate insolvency resolution

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**Application:** Since the main petition (IB) 2356 (ND)/2019 was not admitted yet, the applicant

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** M/S AIRWIL INFRA…
- **Respondents:** M/S ASCOT…; Kamal Agg…

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition of Airwil Vs Ascot bearing…
- **2019-05-27 — CIRP Init…**: Intellicity is already undergoing separate CIR Process since 27.05.2019 pursuant to an…

## 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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