# In the matter of K.S.N. Buildwell Private Limited

> NCLT judgment dated 2023-10-17. Citation: TCN-2023-NCLT-01166. The case involves an application filed by Mr. Mohit Goyal, the Resolution Professional (RP) of…

- **Court:** NCLT
- **Order date:** 17 Oct 2023
- **Citation:** TCN-2023-NCLT-01166
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ksn-buildwell-private-limited-d0ea103b

## Summary

### Background

The case involves an application filed by Mr. Mohit Goyal, the Resolution Professional (RP) of K.S.N Buildwell Private Limited ('Corporate Debtor'), against Uttar Pradesh Housing and Development Board (U.P. Avaas Vikaas Parishad) (‘Respondent No.1'), District Magistrate, Ghaziabad (‘Respondent No.2), Sub-Divisional Magistrate Ghaziabad (‘Respondent No.3') and Tehsildar, Sadar (‘Respondent No.4'). The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking the desealing of premises at Sarvottam Pride, Plot No.-C1, Atal Chowk, Pocket A, Sector 16, Vasundhara, Ghaziabad, Uttar Pradesh – 201012, and a direction to the Housing Board to file its claim. The Corporate Insolvency Resolution Process (CIRP) was initiated against KSN

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against KSN Buildwell Private Limited ('Corporate Debtor') on 13.05.2022, based on an application filed by Omkara Asset Reconstruction Private Limited (‘Financial Creditor'). Mr. Mohit Goyal was appointed as the Resolution Professional (RP) on 11.10.2022, replacing Mr. Anil Matta. The RP discovered that Uttar Pradesh Housing and Development Board (UPAVP) had raised a demand of Rs. 81,62,95,193/- towards outstanding land charges and had sealed the Corporate Debtor's premises at Sarvottam Pride, Ghaziabad. The RP requested UPAVP to file its claim, but UPAVP did not. UPAVP contended that the Corporate Debtor had defaulted on a Hire Purchase Agreement dated 30.03.2010, leading to the sealing of the property.

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## Issues and analysis

### Issue 1: Whether the sealing of the Corporate Debtor's property by the Uttar Pradesh Housing and Development …

**Ratio:** Section 14(1)(d) of the IBC prohibits the recovery of any property by an owner or lessor

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**Reasoning:** The Adjudicating Authority reasoned that the sealing of the property by UPAVP during the

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**Interpretation:** Section 14 of the IBC is interpreted to provide a moratorium that prevents any

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**Application:** In this case, the court applied Section 14(1)(d) to the facts, noting that the

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## Parties

- **Judges:** MANNI SANKARIAH…; BINOD KUMAR…
- **Appellants:** Omkara Assets…
- **Respondents:** K.S.N Buildwell…; K.S.N. Buildwell…

## Timeline

- **2010-03-30 — Hire Purchase…**: Corporate Debtor entered into a Hire…
- **2022-05-13 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against KSN Buildwell Private…

## 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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