# In the matter of Guruashish Construction Pvt. Ltd. IA No. 2333 & 2377-MB-C-I-2020 in C.P. (IB) No. 1061-I&BP-2017

> NCLT judgment dated 2023-02-10. Citation: TCN-2023-NCLT-04656. The case involves a dispute over the inclusion of a 47-acre property, 'Siddharth Nagar…

- **Court:** NCLT
- **Order date:** 10 Feb 2023
- **Citation:** TCN-2023-NCLT-04656
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/guruashish-construction-pvt-ltd-ia-no-2333-2377-mb-c-i-2020-in-cp-ib-no-1061-ibp-0c61dc39

## Summary

### Background

The case involves a dispute over the inclusion of a 47-acre property, 'Siddharth Nagar Property,' owned by Maharashtra Housing and Area Development Authority (MHADA), in the liquidation estate of Guruashish Construction Private Limited ('Corporate Debtor'). MHADA filed IA No. 2333/2020 seeking the exclusion of the property from the liquidation estate, arguing that it is the owner and the Corporate Debtor only had a license to develop the land under a Joint Development Agreement (JDA). The Liquidator filed IA No. 2377/2020 claiming the entire 47 acres should be part of the Liquidation Estate. The JDA, dated 10th April 2008, granted the Corporate Debtor a license to enter MHADA's land to construct and hand over MHADA and rehabilitation portions free of cost, with the

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## Facts

MHADA owned a 47-acre property called 'Siddharth Nagar Property'. On April 10, 2008, MHADA entered into a Joint Development Agreement (JDA) with Guruashish Construction Private Limited ('Corporate Debtor'), granting the Corporate Debtor a license to develop the property. The Corporate Debtor was obligated to construct rehabilitation and MHADA components free of cost. In return, the Corporate Debtor was granted a Free Sale Component to recover costs. The Corporate Debtor failed to fulfill its obligations under the JDA, including constructing the rehabilitation and MHADA components and paying rent to tenants during the transit period. MHADA terminated the JDA on January 12, 2018, due to the Corporate Debtor's default. The Resolution Professional filed an application

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## Issues and analysis

### Issue 1: Whether the 'Siddharth Nagar Property' owned by MHADA can be included in the liquidation estate of …

**Ratio:** Section 36(4)(a)(iv) of the Insolvency and Bankruptcy Code (IBC) excludes assets owned by

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**Reasoning:** The Tribunal reasoned that since MHADA is the admitted owner of the 'Siddharth Nagar

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**Interpretation:** Section 36 of the IBC defines the assets that form part of the liquidation

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**Application:** In this case, MHADA is the third-party owner of the 'Siddharth Nagar Property,'

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Maharashtra…
- **Respondents:** Guruashish…; Rajendra K.…
- **Advocates:** Janak Dwa…; Shilpi…; +3 more

## Timeline

- **1948-01-01 — Initial V…**: The property was initially vested in the erstwhile Bombay Housing and Area Development…
- **1977-12-05 — Board Disso…**: The Board was dissolved by G.R. dated 5th…

## 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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