# In the matter of Samruddhi Reality Ltd.

> NCLT judgment dated 2023-12-14. Citation: TCN-2023-NCLT-00239. The case involves two applications, I.A. No. 457 of 2022 and I.A. No. 458 of 2022, filed by…

- **Court:** NCLT
- **Order date:** 14 Dec 2023
- **Citation:** TCN-2023-NCLT-00239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/samruddhi-reality-ltd-949c718a

## Summary

### Background

The case involves two applications, I.A. No. 457 of 2022 and I.A. No. 458 of 2022, filed by Jason Nath and Manjinder Singh, respectively, seeking to direct the respondent liquidator of M/s Samruddhi Reality Ltd (in liquidation) to register flats in their names and exclude the flats from the liquidation estate of the corporate debtor. The applicants had entered into agreements for sale and construction with the corporate debtor and had paid a significant portion of the consideration. However, the corporate debtor had mortgaged the flats to Indiabulls Housing Finance Ltd without the knowledge of the applicants. The liquidator rejected the applicants' requests to register the flats in their names, citing that mere agreement to sell or possession over property does not

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## Facts

Jason Nath and Manjinder Singh each entered into separate 'Agreement to Sale and Construction' with M/s Samruddhi Reality Ltd for apartments in the 'Samruddhi Sunshine' project. Jason Nath (I.A. 457) paid 97% (Rs. 34,00,000/- out of Rs. 35,00,000/-) of the consideration for Flat No. 14B, with the agreement registered on 04.05.2013. Manjinder Singh (I.A. 458) paid 100% (Rs. 27,01,000/-) of the consideration for Flat No. 13A, with the agreement registered on 14.02.2013. The agreements stipulated completion within 36 months. Without the applicants' knowledge, M/s Samruddhi Reality Ltd mortgaged the flats to Indiabulls Housing Finance Ltd on 26.07.2016. Jason Nath filed a claim of Rs. 99,00,735, of which Rs. 50,69,721 was admitted by the liquidator. Manjinder Singh filed a

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## Issues and analysis

### Issue 1: Whether the Liquidator can be directed to register the flat in the name of the Applicant based on …

**Ratio:** An agreement to sell does not create any interest in or charge on the property. Ownership

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**Reasoning:** The Tribunal relied on Section 54 of the Transfer of Property Act, which states that the

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**Interpretation:** The legal position is that an agreement to sell is merely a contract for sale

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**Application:** In this case, the applicants only had an agreement to sell with the Corporate

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Jason…
- **Respondents:** M/s Samruddhi…; Pankaj Sriv…

## Timeline

- **2013-02-14 — Agreement to Sale…**: Manjinder Singh entered into an 'Agreement of Sale' on 14.02.2013 with respect to an…
- **2013-04-05 — Agreement to Sale…**: Jason Nath entered into an “Agreement to Sale and Construction” on 04.05.2013 with…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36(3) — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

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