# In the matter of Mather Projects Private Limited MA 2248-2019 in CP(IB)-3633(MB)-2018

> NCLT judgment dated 2022-01-18. Citation: TCN-2022-NCLT-04421. The case involves an application (MA 2248/2019) filed by Mrs. Seema K. Nayar and Mr. K. Vijaya…

- **Court:** NCLT
- **Order date:** 18 Jan 2022
- **Citation:** TCN-2022-NCLT-04421
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mather-projects-private-limited-ma-2248-2019-in-cpib-3633mb-2018-0bb761c8

## Summary

### Background

The case involves an application (MA 2248/2019) filed by Mrs. Seema K. Nayar and Mr. K. Vijaya Mohan Valiathan, who are financial creditors as flat owners, against Mather Projects Private Limited, the corporate debtor. The applicants claimed a total financial debt of approximately Rs.49.69 lakhs. The applicants, as joint flat purchasers in the 'Hacienda' project, alleged that a Deed of Assignment dated 05.09.2018, assigning the construction of remaining flats to M/s Locus Construction Private Limited, was an undervalued/preferential transaction and should be set aside. They also alleged that the successful Resolution Applicant, Mr. Mohammed Shaffi Mather, was a related party of the Corporate Debtor and thus ineligible.

## Facts

Mrs. Seema K. Nayar and Mr. K. Vijaya Mohan Valiathan, as financial creditors and flat owners in the 'Hacienda' project of Mather Projects Private Limited (the Corporate Debtor), filed an application (MA 2248/2019) claiming Rs.49.69 lakhs in financial debt. They alleged that a Deed of Assignment dated 05.09.2018, assigning the construction of remaining flats to M/s Locus Construction Private Limited, was an undervalued/preferential transaction. The applicants also contended that the successful Resolution Applicant, Mr. Mohammed Shaffi Mather, was a related party of the Corporate Debtor, making him ineligible. The CIRP of the Corporate Debtor commenced on 30.11.2018, and the Resolution Plan submitted by Mr. Mohammed Shaffi Mather was approved with 72.37% vote of the CoC

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## Issues and analysis

### Issue 1: Whether the Deed of Assignment dated 05.09.2018, assigning the construction of remaining flats in …

**Ratio:** A transaction cannot be considered undervalued if the sale price after the assignment is

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**Reasoning:** The Bench noted that the average price per sq ft at which the 50 apartments were sold

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**Interpretation:** The court interpreted the facts to determine if the assignment was undervalued.

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**Application:** Since the price per sq ft was higher after the assignment, the court applied

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Mrs Seema K…
- **Respondents:** Mather Projects…; Kizhakkekkara…

## Timeline

- **2018-09-05 — Deed of Ass…**: Deed of Assignment executed, assigning the construction of remaining flats in the…
- **2018-11-30 — CIRP Commen…**: CIRP of the Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 47 — Application by creditor in cases of undervalued…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-47)

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