# 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-05044. The case involves an application filed by Prakash Matlani & Anr. against Arun Kapoor, the…

- **Court:** NCLT
- **Order date:** 13 Jan 2023
- **Citation:** TCN-2023-NCLT-05044
- **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-dae880b5

## Summary

### Background

The case involves an application filed by Prakash Matlani & Anr. against Arun Kapoor, the Resolution Professional (RP), due to the rejection of their claim. 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/-. CIRP was initiated against the Corporate Debtor on 27.09.2019. The initial RP admitted the applicants' claim, but the subsequent RP, Arun Kapoor, rejected it in March 2022. The applicants allege they were not properly informed of the rejection and discovered it through an email. The respondent contends that the application is not maintainable, the applicants are not financial creditors, and there is no proof of payment to the Corporate Debtor.

## Facts

In 2012, Prakash Matlani & Anr. (Applicants) purchased flats in a project developed by Monarch Imperial, a sister concern of an unnamed Corporate Debtor. They paid Rs. 75,00,000/- to Monarch Imperial against a registered Agreement for Sale for Flat Nos. 1103 (Arizona), 1106 (Arizona), and 1101 (Virginia). Due to delays, the funds were transferred and utilized in the Corporate Debtor's real estate project, 'Monarch Brookfields.' Receipts dated 02.08.2016 were issued by the Corporate Debtor. On 27.09.2019, CIRP was initiated against the Corporate Debtor. The initial Resolution Professional (RP), Mr. S. Gopalkrishnan, admitted the Applicants' claim on 20.01.2020. However, on 03.08.2021, Mr. Arun Kapoor replaced Mr. Gopalkrishnan as RP. In March 2022, Mr. Kapoor

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) was justified in rejecting the claim of the Applicants …

**Ratio:** Once a claim is admitted by the RP, it cannot be rejected arbitrarily without proper

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**Reasoning:** The court considered that the initial RP had admitted the claim, and the subsequent RP

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**Interpretation:** The interpretation is that the RP has a duty to act fairly and reasonably when

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**Application:** In this case, the court found that the RP's rejection of the claim was not

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## Parties

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

## Timeline

- **2012-01-01 — Purchase of…**: Applicants purchased flats in a project developed by Monarch Imperial and paid Rs.…
- **2016-08-02 — Receipts…**: Receipts issued by the…

## 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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