# In the matter of Sabari Realtors Pvt. Ltd. IA(IBC)-1084(CHE)-2021 in IBA-471-2019

> NCLT judgment dated 2021-11-26. Citation: TCN-2021-NCLT-00400. The Corporate Insolvency Resolution Process (CIRP) for Sabari Realtors Private Limited was…

- **Court:** NCLT
- **Order date:** 26 Nov 2021
- **Citation:** TCN-2021-NCLT-00400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sabari-realtors-pvt-ltd-iaibc-1084che-2021-in-iba-471-2019-a1c5bc0e

## Summary

### Background

The Corporate Insolvency Resolution Process (CIRP) for Sabari Realtors Private Limited was initiated by the Tribunal based on an application by a Financial Creditor under Section 7 of the IBC. An Interim Resolution Professional (IRP) was initially appointed but later expressed inability to continue. Subsequently, another IRP, Ms. Geetha Sridhar, was appointed. A public announcement was made, and the Insolvency Commencement Date was declared. The Committee of Creditors (CoC) was formed, and meetings were held. HDFC Bank, a financial creditor, entered into a One Time Settlement (OTS) with the Corporate Debtor. The Resolution Professional (RP) filed an application seeking to extend the CIRP period and exclude the COVID-19 lockdown period. The CIRP period of 270 days ended

…

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sabari Realtors Private Limited following an application by a Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code (IBC). An Interim Resolution Professional (IRP) was appointed, followed by Ms. Geetha Sridhar. The Insolvency Commencement Date was publicly announced. The Committee of Creditors (CoC) was formed, consisting of two Financial Creditors and 35 home buyers. HDFC Bank, a financial creditor, entered into a One Time Settlement (OTS) with the Corporate Debtor and received Rs.4.5 Crore and adjusted Rs.1,09,77,726. The RP filed an application to extend the CIRP period and exclude the COVID-19 lockdown period. The 270-day CIRP period ended on 27.09.2021. The CoC voted

…

## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) committed lapses in the Corporate Insolvency Resolution …

**Ratio:** The RP is expected to conduct the CIRP diligently and in compliance with the provisions

…

**Reasoning:** The Tribunal observed discrepancies in the Insolvency Commencement Date, failure to issue

…

**Interpretation:** The RP's actions are interpreted as a failure to adhere to the procedural

…

**Application:** The Tribunal's findings of lapses by the RP led to the direction for IBBI to

…

## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** S. Amare…
- **Respondents:** Sabari Realtors…

## Timeline

- **2019-09-30 — CIRP Init…**: The Tribunal ordered the CIRP in…
- **2019-12-26 — OTS with HD…**: HDFC Bank entered into a One Time…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/sabari-realtors-pvt-ltd-iaibc-1084che-2021-in-iba-471-2019-a1c5bc0e