# In the matter of Arena Superstructures Pvt. Ltd. I.A.-4546(PB) of 2021 in (IB) 875-(PB)-2020

> NCLT judgment dated 2022-05-10. Citation: TCN-2022-NCLT-02793. The case involves an application filed by M/s. PNB Housing Finance Limited, now Assets…

- **Court:** NCLT
- **Order date:** 10 May 2022
- **Citation:** TCN-2022-NCLT-02793
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/arena-superstructures-pvt-ltd-ia-4546pb-of-2021-in-ib-875-pb-2020-d04bb3d4

## Summary

### Background

The case involves an application filed by M/s. PNB Housing Finance Limited, now Assets Reconstruction Company India Limited, seeking reliefs related to the applicability of Regulation 16A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and the revision of the admitted claim and voting share of homebuyers in the corporate insolvency resolution process (CIRP) of M/s. Arena Superstructures Pvt. Ltd. The financial creditor, M/s. Dhankalash Distributors Pvt. Ltd., initiated CIRP against Arena Superstructures due to defaults in housing project development. PNB Housing Finance, as a member of the Committee of Creditors (CoC), raised objections to the 8% interest added to the debt owed to the homebuyers, arguing it unfairly affects their

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## Facts

M/s. Dhankalash Distributors Pvt. Ltd. initiated CIRP against M/s. Arena Superstructures Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. Arena Superstructures is a corporate debtor engaged in housing project development. The Section 7 petition was admitted on 2020-10-29. M/s. PNB Housing Finance Limited, now Assets Reconstruction Company India Limited, is a member of the Committee of Creditors (CoC). Homebuyers are also part of the CoC, numbering approximately 800. The Resolution Professional (RP) admitted claims of the homebuyers, including an 8% interest component as per Regulation 16A(7) of the CIRP Regulations. PNB Housing Finance objected to this 8% interest, arguing it is unfair due to a clause (5.5) in the Apartment Buyer Agreement that

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## Issues and analysis

### Issue 1: Whether in the absence of any interest rate in the Agreement, the Creditors in a class namely …

**Ratio:** The legal principle applied is that in the absence of a specified interest rate in the

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**Reasoning:** The court reasoned that the Apartment Buyer Agreement does not specify interest payable

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**Interpretation:** The interpretation of Regulation 16A(7) and the Apartment Buyer Agreement is

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**Application:** The court applied the ratio and reasoning to the specific facts by examining

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** M/s. PNB Housing…
- **Respondents:** Arena Superstructu…

## Timeline

- **2020-10-29 — Section 7 Petition…**: The Section 7 petition filed by M/s. Dhankalash Distributors Pvt. Ltd. against M/s. Arena…
- **2020-01-01 — CIRP Init…**: CIRP was initiated against M/s.…

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