# In the matter of Housing Development and Infrastructure Ltd.

> NCLT judgment dated 2023-11-20. Citation: TCN-2023-NCLT-00709. The case involves an application (I.A. 784/2023) filed by Galaxy Apartment F Wing Welfare…

- **Court:** NCLT
- **Order date:** 20 Nov 2023
- **Citation:** TCN-2023-NCLT-00709
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/housing-development-and-infrastructure-ltd-270042b0

## Summary

### Background

The case involves an application (I.A. 784/2023) filed by Galaxy Apartment F Wing Welfare Association under section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking to carve out 'F' wing from Galaxy Apartment as a separate vertical project of the Corporate Debtor, Housing Development and Infrastructure Ltd. (HDIL), and to allow the rerun of the Corporate Insolvency Resolution Process (CIRP) with respect to the carved-out 'F' Wing. The CIRP was initiated against HDIL following a default in repayment of facilities granted by Bank of India. The project, Galaxy Apartment, was divided into multiple verticals, with 'F' Wing being Vertical IV. The applicant, representing 110 homebuyers of 'F' Wing, seeks to become a prospective resolution applicant for the wing, as

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## Facts

The Corporate Debtor, Housing Development and Infrastructure Ltd. (HDIL), faced Corporate Insolvency Resolution Process (CIRP) initiated by Bank of India due to a default of Rs. 522,29,06,768/- on 04.12.2018. The CIRP was initiated on 20.08.2019. The project 'Galaxy Apartment' in Kurla (E), Mumbai, was divided into 6 wings (A to F). The applicant, Galaxy Apartment F Wing Welfare Association, represents 110 homebuyers of the 'F' wing, which is part of a Slum Rehabilitation Scheme. Wings A to E were completed and possession was given, but 'F' wing's construction is pending since 2009, only up to the plinth level, and came to a standstill in 2012. The CoC decided on 08.09.2021 to go for project-wise resolution and divided the Corporate Debtor into 10 Verticals on

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## Issues and analysis

### Issue 1: Whether the NCLT should allow the carving out of 'F' Wing from Galaxy Apartment as a separate …

**Ratio:** Section 60(5) of the IBC provides the NCLT with broad powers to deal with any question of

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**Reasoning:** The court's reasoning would likely focus on the fact that no resolution plan has been

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**Interpretation:** Section 60(5) is interpreted broadly to empower the NCLT to take necessary

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**Application:** The ratio and reasoning would be applied to the specific facts of the case,

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** Galaxy Apartment…
- **Respondents:** Housing Developmen…; Abhay Man…
- **Advocates:** Manoj M…; Shadab…; +3 more

## Timeline

- **2018-12-04 — Default by Corporate…**: Housing Development and Infrastructure Ltd. (HDIL) committed default in repayment of…
- **2019-08-20 — CIRP Init…**: Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP) against…

## 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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