# In the matter of Shree Vardhman Buildprop Private Limited

> NCLT judgment dated 2024-01-18. Citation: TCN-2024-NCLT-03004. The case involves an interlocutory application (I.A. No. 6467 of 2023) filed by Mr. Rajesh…

- **Court:** NCLT
- **Order date:** 18 Jan 2024
- **Citation:** TCN-2024-NCLT-03004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shree-vardhman-buildprop-private-limited-3267d843

## Summary

### Background

The case involves an interlocutory application (I.A. No. 6467 of 2023) filed by Mr. Rajesh Kumar, seeking to be impleaded as a necessary party in a Company Petition (C.P.(IB) No. 445 of 2023) filed under Section 7 of the Code, 2016. The Company Petition was initiated by IDBI Trusteeship Services Limited, the Financial Creditor, against Shree Vardhman Buildrop Private Limited, the Corporate Debtor, for initiating Corporate Insolvency Resolution Process (CIRP). The applicant, Mr. Rajesh Kumar, along with other homebuyers, seeks intervention, claiming that the admission of the Company Petition may hamper the delivery of possession of units in the 'Shree Vardhaman Mantra' project promoted by the Corporate Debtor.

## Facts

IDBI Trusteeship Services Limited, acting as the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Shree Vardhman Buildrop Private Limited, the Corporate Debtor, by filing a petition under Section 7 of the Code, 2016. Mr. Rajesh Kumar, along with 24 other applicants claiming to be homebuyers in the 'Shree Vardhaman Mantra' project developed by the Corporate Debtor, filed an interlocutory application (I.A. No. 6467 of 2023) seeking to be impleaded as necessary parties. The homebuyers argued that admitting the petition would delay the project's completion and handover of apartments, prejudicing their interests. Mr. Rajesh Kumar had booked an apartment in the project and paid a majority of the sums due under the Apartment Buyer

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## Issues and analysis

### Issue 1: Whether the intervention of a third party, specifically homebuyers, is permissible in an …

**Ratio:** In an application filed under Section 7 of the Code, 2016, the Financial Creditor and the

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**Reasoning:** The court relied on the precedents set by the NCLAT in 'Shobhnath & ors. Vs. Prism

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**Interpretation:** The legal issue concerns the scope of parties involved in an insolvency

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** IDBI Trusteeship…
- **Respondents:** Shree Vardhman…; Shree Vardhman…

## Timeline

- **2023-01-01 — Filing of Company…**: IDBI Trusteeship Services Limited filed C.P.(IB)/445/2023 under Section 7 of the Code,…
- **2023-01-01 — Filing of Interlocutory…**: Mr. Rajesh Kumar filed I.A. No. 6467 of 2023 seeking to be impleaded as a necessary party…

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