# In the matter of Earthcon Universal Infratech Private Limited

> NCLT judgment dated 2023-12-18. Citation: TCN-2023-NCLT-00198. The case involves an application (IA-287/2021) filed by Mr. Rupesh Das & 37 Ors., representing…

- **Court:** NCLT
- **Order date:** 18 Dec 2023
- **Citation:** TCN-2023-NCLT-00198
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/earthcon-universal-infratech-private-limited-483fcb7e

## Summary

### Background

The case involves an application (IA-287/2021) filed by Mr. Rupesh Das & 37 Ors., representing homebuyers of the Sanskriti residential project, against the Resolution Professional (RP) of Earthcon Universal Infratech Private Limited. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking various reliefs related to the conduct of the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor, M/s. Nisus Finance & Investment LLP, initiated the CIRP against Earthcon, which was admitted on 08.11.2020. The applicants allege that the RP took decisions detrimental to the interest of the homebuyers, including raising illegal demands for electricity and maintenance charges, delaying the appointment of a Forensic

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## Facts

M/s. Nisus Finance & Investment LLP initiated CIRP against M/s. Earthcon Universal Infratech Private Limited, which was admitted on 08.11.2020. Mr. Jitendra Arora was appointed as Interim Resolution Professional, later replaced by Mr. Gaurav Katiyar. The homebuyers of the Sanskriti residential project, led by Mr. Rupesh Das, filed IA-287/2021 under Section 60(5) of the IBC, alleging detrimental decisions by the RP. The homebuyers claimed the RP raised illegal demands for electricity and maintenance charges, delayed the appointment of a Forensic Auditor, and conducted CoC meetings with opaqueness. The RP denied these allegations, stating that the increase in maintenance charges was rejected and that electricity charges were in line with commercial rates. A

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can interfere with the commercial wisdom of the Committee of …

**Ratio:** The commercial wisdom of the CoC is given paramount status, and the Adjudicating

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**Reasoning:** The court relied on the Supreme Court's judgment in K. Sashidhar Versus Indian Overseas

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**Interpretation:** This means that the Adjudicating Authority should generally defer to the

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**Application:** In this case, since the CoC had already approved the Resolution Plan, the

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Rupesh…
- **Respondents:** M/s. EARTHCON…; Gaurav Ka…

## Timeline

- **2020-11-08 — CIRP Admi…**: The application filed by M/s. Nisus Finance & Investment LLP against M/s. Earthcon…
- **2021-01-17 — Application by…**: Mr. Rupesh Das & 37 Ors. filed an application (IA-287/2021) under Section 60(5) of the…

## 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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