# In the matter of Dugar Housing Limited MA-1428-2019 & MA-67,68,82-2020 in IBA-222-2019

> NCLT judgment dated 2020-02-21. Citation: TCN-2020-NCLT-01849. The case involves multiple applications related to the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 21 Feb 2020
- **Citation:** TCN-2020-NCLT-01849
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dugar-housing-limited-ma-1428-2019-ma-676882-2020-in-iba-222-2019-1c644a75

## Summary

### Background

The case involves multiple applications related to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Dugar Housing Limited. MA No. 67/2020 is an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of the CIRP. Other applications primarily oppose this withdrawal. The CIRP was initiated on 2019-11-13, and the applicant was appointed as the Interim Resolution Professional (IRP). The corporate debtor is maintained as a 'going concern' with three real estate projects. The operational creditor, Prism Johnson Limited, Hyderabad, had filed an application before the constitution of the Committee of Creditors (COC).

## Facts

The CIRP was initiated against M/s. Dugar Housing Limited on 2019-11-13. Velli Paramasivam was appointed as the Interim Resolution Professional (IRP). The corporate debtor has three real estate projects: GLO DUGAR PROJECT, SKY DUGAR PROJECT, and LAKE DUGAR PROJECT. Prism Johnson Limited, an operational creditor, filed an application before the COC's constitution. The IRP made a public announcement calling for claims. Sree Sankeswara Foundations and Investments lodged a claim as a financial creditor and was initially included in the COC. The IRP later removed Sree Sankeswara Foundations and Investments and Gurudev Foundations Pvt. Ltd from the COC, considering them 'related parties' due to joint development agreements. The 2nd COC meeting was held on 2020-01-14, where a

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## Issues and analysis

### Issue 1: Whether the resolution seeking withdrawal under Section 12A of IBC, 2016, was passed by a validly …

**Ratio:** Section 12A of IBC, 2016, requires the approval of ninety per cent of the voting share of

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**Reasoning:** The court considered whether the COC was validly constituted, focusing on the inclusion

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**Interpretation:** The interpretation of Section 12A of IBC, 2016, requires a validly constituted

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**Application:** The court found that the IRP had rightly exercised his power of revision under

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Velli Param…
- **Respondents:** M/s. Dugar…; M/s. Prism…

## Timeline

- **2019-11-13 — CIRP Init…**: CIRP initiated against…
- **2019-11-13 — IRP Appoi…**: Velli Paramasivam appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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