# In the matter of Monarch Brookefields LLP IA No. 1128 of 2022 in CP (IB) 2517-MB-2018

> NCLT judgment dated 2023-01-13. Citation: TCN-2023-NCLT-05039. The Applicants, Prakash Matlani & Anr., filed an application against the rejection of their…

- **Court:** NCLT
- **Order date:** 13 Jan 2023
- **Citation:** TCN-2023-NCLT-05039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/monarch-brookefields-llp-ia-no-1128-of-2022-in-cp-ib-2517-mb-2018-65bae301

## Summary

### Background

The Applicants, Prakash Matlani & Anr., filed an application against the rejection of their claim by the Respondent/Resolution Professional, Arun Kapoor. The Applicants had purchased flats in a project developed by Monarch Imperial, a sister concern of the Corporate Debtor, and paid Rs. 75,00,000/-. Due to delays, the funds were transferred to the Corporate Debtor's real estate project. CIRP was initiated against the Corporate Debtor on 27.09.2019, and an RP was appointed. The Applicants filed their claim on 20.01.2020, which was initially admitted. However, the RP was replaced, and the new RP rejected the claims in March 2022, without intimation. The Applicants argue that the rejection is unjustified as their claim was initially accepted and a registered agreement

…

## Facts

In 2012, Prakash Matlani & Anr. (Applicants) purchased flats in a project by Monarch Imperial, sister concern to the Corporate Debtor. They paid Rs. 75,00,000/- to Monarch Imperial against registered agreements for Flat Nos. 1103 (Arizona), 1106 (Arizona), and 1101 (Virginia). Due to project delays, Monarch Imperial's partners transferred the funds to the Corporate Debtor's real estate project. Receipts dated 02.08.2016, issued by the Corporate Debtor, evidenced the Rs. 75,00,000/- payment for flats in 'Monarch Brookfields'. On 27.09.2019, CIRP was initiated against the Corporate Debtor. S. Gopalkrishnan was appointed RP. The Applicants filed their claim on 20.01.2020, which was admitted by the RP. On 03.08.2021, Arun Kapoor replaced S. Gopalkrishnan as RP. In

…

## Issues and analysis

### Issue 1: Whether the Respondent/Resolution Professional was justified in rejecting the Applicants' claim …

**Ratio:** Once a claim is admitted by the Resolution Professional, it cannot be rejected

…

**Reasoning:** The court found that the Respondent's rejection of the claim was not justified,

…

**Interpretation:** This highlights the importance of consistency in the Resolution Professional's

…

**Application:** The court applied this principle to the specific facts, noting that the

…

## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Prakash M…
- **Respondents:** Monarch Brookfield…; Arun Ka…

## Timeline

- **2012-01-01 — Flat Pur…**: Applicants purchased flats in a project by Monarch Imperial, a sister concern of the…
- **2016-08-02 — Receipts…**: Corporate Debtor issued receipts for Rs.…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/monarch-brookefields-llp-ia-no-1128-of-2022-in-cp-ib-2517-mb-2018-65bae301