# In the matter of Nirmal Lifestyle Realty Private Limited

> NCLT judgment dated 2024-03-07. Citation: TCN-2024-NCLT-02158. The case involves an Interlocutory Application (I.A No. 2687 of 2022) filed in connection with…

- **Court:** NCLT
- **Order date:** 7 Mar 2024
- **Citation:** TCN-2024-NCLT-02158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nirmal-lifestyle-realty-private-limited-68c0d510

## Summary

### Background

The case involves an Interlocutory Application (I.A No. 2687 of 2022) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Nirmal Lifestyle Realty Private Limited (CP (IB) 315 (MB) of 2019). The applicant, Chandrakant Shah (Suspended Director), sought to set aside the ongoing CIRP, reject a resolution plan submitted by Oberoi Constructions Limited, direct the Respondent (Resolution Professional) to issue a fresh Form & notice, and stay the CIRP pending the application's disposal. The applicant alleged material irregularities in the CIRP conduct, including preventing other bidders and imposing arbitrary preconditions.

## Facts

Chandrakant Shah, the suspended director of Nirmal Lifestyle Realty Private Limited, filed an Interlocutory Application (IA No. 2687 of 2022) seeking to set aside the ongoing Corporate Insolvency Resolution Process (CIRP) against the company. The CIRP was initiated following a Company Petition (CP (IB) 315 (MB) of 2019). Shah alleged material irregularities in the CIRP conduct, including preventing other bidders from participating and imposing arbitrary preconditions. He also challenged the resolution plan submitted by Oberoi Constructions Limited. The Resolution Professional (RP), Jayesh Sanghrajke, refuted these allegations, asserting that all procedures were followed according to the Insolvency and Bankruptcy Code (IBC) and that Shah was kept informed throughout the

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## Issues and analysis

### Issue 1: Whether the current ongoing CIRP of the Corporate Debtor should be set aside due to material …

**Ratio:** The CIRP process should be conducted in accordance with the Insolvency and Bankruptcy

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**Reasoning:** The Tribunal considered the applicant's allegations of material irregularities but found

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**Interpretation:** The interpretation of the Code requires strict adherence to the prescribed

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**Application:** In this case, the Tribunal found that the applicant's allegations of material

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Appellants:** Chandrakan…
- **Respondents:** NIRMAL LIFESTYLE…; Jayesh Sang…

## Timeline

- **2019-01-01 — CP (IB) 315 (MB…**: Company Petition filed,…
- **2021-12-06 — Order regarding CIRP…**: Order dated 06.12.2021 in Company Petition No. 315 of 2019, initiating Corporate…

## 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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