# In the matter of Fortuna Urbanscape Private Limited I.A. No. 28-2020 in C.P. (IB) 132-BB-2017

> NCLT judgment dated 2021-01-29. Citation: TCN-2021-NCLT-03197. The case involves I.A. No.28/2020 in C.P. (IB) No.132/BB/2017 filed by Mr. Shivadutt Bannanje,…

- **Court:** NCLT
- **Order date:** 29 Jan 2021
- **Citation:** TCN-2021-NCLT-03197
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fortuna-urbanscape-private-limited-ia-no-28-2020-in-cp-ib-132-bb-2017-37301204

## Summary

### Background

The case involves I.A. No.28/2020 in C.P. (IB) No.132/BB/2017 filed by Mr. Shivadutt Bannanje, the Resolution Professional (RP) of M/s. Fortuna Urbanscape Private Limited, seeking to consider and restore rights under a Joint Development Agreement (JDA) dated 2011-11-21, as if its cancellation dated 2019-06-12 had not occurred. The RP also sought to protect the interests of homebuyers who were victims of the transactions. The initial Corporate Insolvency Resolution Process (CIRP) was initiated by M/s. Reliance Capital AIF Trustee Company Private Limited against M/s. Fortuna Urbanscape Private Limited, admitted on 2019-08-09. The Corporate Debtor had entered into a JDA and General Power of Attorney on 2011-11-21 with landowners for developing agricultural lands. Disputes

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## Facts

M/s. Fortuna Urbanscape Private Limited (Corporate Debtor) entered into a Joint Development Agreement (JDA) and General Power of Attorney on 2011-11-21 with landowners for developing agricultural lands. The lands, totaling 9 Acres 12 Guntas, were intended for both commercial and residential purposes. The Corporate Debtor was to develop 3 Acres 11 Guntas for commercial purposes and 6 Acres 1 Gunta for residential purposes. Approximately 50 homebuyers paid Rs. 10,05,19,370/- as advance/full payment for apartments and villa plots. The JDA included clauses regarding the non-revocation of the power of attorney and the completion of construction within 48 months plus a 12-month grace period. The Corporate Debtor paid the landowners Rs. 20,59,66,102/- as a deposit towards the

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## Issues and analysis

### Issue 1: Whether the cancellation of the Joint Development Agreement (JDA) dated 2011-11-21 and its impact …

**Ratio:** The NCLT should not adjudicate the preferential nature of a transaction under a contract

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**Reasoning:** The court reasoned that after the approval of the Resolution Plan, the company is

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**Interpretation:** This issue concerns the court's ability to intervene in contractual matters

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**Application:** The court applied this principle to the specific facts by stating that the NCLT

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Shivadutt B…
- **Respondents:** Fortuna Urbanscape…; M/s. Fortuna…

## Timeline

- **2011-11-21 — Joint Development…**: Corporate Debtor entered into a JDA and…
- **2019-06-12 — Cancellation…**: Corporate Debtor cancelled the JDA and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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