# In the matter of Monarch Brookefields LLP Company Appeal No. 9 of 2022 In CP 2517 OF 2018

> NCLT judgment dated 2023-03-03. Citation: TCN-2023-NCLT-04351. The case involves an application filed by Shankar Sawant and Sandhya Sawant, seeking directions…

- **Court:** NCLT
- **Order date:** 3 Mar 2023
- **Citation:** TCN-2023-NCLT-04351
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/monarch-brookefields-llp-company-appeal-no-9-of-2022-in-cp-2517-of-2018-679f068b

## Summary

### Background

The case involves an application filed by Shankar Sawant and Sandhya Sawant, seeking directions to the Resolution Professional of Monarch Brookefields LLP (Under Liquidation) to accept their claims. The applicants had purchased a flat in a project developed by Monarch Brookefields LLP, making payments totaling Rs. 35,12,000/-. The Corporate Debtor delayed handing over possession, and the applicants later learned of the initiation of the Corporate Insolvency Resolution Process (CIRP). They filed a claim with the Resolution Professional, which was rejected. The applicants then filed a Company Appeal before the NCLT.

## Facts

Shankar Sawant and Sandhya Sawant decided to purchase a flat in a new project developed by Monarch Brookefields LLP. They paid a token amount of Rs. 1,00,000/- and received an Allotment Letter for Flat No. 402, "Florida" Building. They made a series of payments totaling Rs. 35,12,000/- between 2011 and 2015. An Agreement of Sale was executed and registered on September 14, 2015. The Corporate Debtor delayed handing over possession. The applicants learned about the initiation of CIRP on September 27, 2019, and filed a claim for Rs. 55,30,269/- with the Resolution Professional on February 2, 2022. The Resolution Professional rejected the claim via email on February 7, 2022, citing the approved Resolution Plan. The applicants filed a Company Appeal on July 28, 2022.

## Issues and analysis

### Issue 1: Whether the Resolution Professional was justified in rejecting the claim of the Applicants who are …

**Ratio:** The extinguishment of a claim of an Appellant shall happen only after approval of the

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**Reasoning:** The NCLT reasoned that since the Resolution Plan was still pending adjudication before

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**Interpretation:** The interpretation is that the rights of bonafide homebuyers to claim their

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**Application:** In this case, since the Resolution Plan was still pending adjudication before

…

## Parties

- **Judges:** Kuldip Kumar…; Shyam Babu…
- **Appellants:** Shankar S…
- **Respondents:** Monarch Brookfield…; Arun Ka…
- **Advocates:** Vishwanath…; Amir Ars…

## Timeline

- **2011-01-23 — Payment to Corporate…**: Shankar Sawant paid Rs.…
- **2011-11-28 — Payment to Corporate…**: Shankar Sawant paid Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 42 — Appeal against the decision of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-42)

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