# In the matter of Sidhartha Buildhome Private Limited IA No. 3024-ND-2022 in IB-717-2019

> NCLT judgment dated 2022-11-25. Citation: TCN-2022-NCLT-00327. The application was filed by Home Buyers and Financial Creditors of the Corporate Debtor under…

- **Court:** NCLT
- **Order date:** 25 Nov 2022
- **Citation:** TCN-2022-NCLT-00327
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sidhartha-buildhome-private-limited-ia-no-3024-nd-2022-in-ib-717-2019-9ab3a731

## Summary

### Background

The application was filed by Home Buyers and Financial Creditors of the Corporate Debtor under Section 60 (5) of the Insolvency & Bankruptcy Code, 2016, seeking a declaration that Mr. Siddharth Chauhan, being a promoter of the Corporate Debtor, is ineligible to present the Resolution Plan and to prevent voting on the Resolution Plan presented by him. The applicants argued that despite the promoter being ineligible under section 29-A of the IBC, the resolution plan proposed by him was being tabled for discussion. The applicants, who are home buyers and financial creditors, invested their life savings in the project promoted by the Corporate Debtor. They sought a declaration that Mr. Sidharth Chauhan is ineligible due to the Corporate Debtor's account being declared

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## Facts

Harbans Singh & Ors filed an application against Shri Devender Singh & Anr, and Sidhartha Build Home Private Limited. The applicants, Home Buyers and Financial Creditors, sought a declaration that Mr. Siddharth Chauhan, the promoter of Sidhartha Build Home Private Limited, is ineligible to present a Resolution Plan under Section 29A of the Insolvency and Bankruptcy Code (IBC). The applicants argued that the Corporate Debtor's account was declared a Non-Performing Asset (NPA) by the Financial Creditor, Oriental Bank of Commerce (now Punjab National Bank), during the period when Mr. Chauhan was in management. They also alleged preferential, undervalued, and fraudulent transactions by the Corporate Debtor, as reported in the Transaction Audit Report dated

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## Issues and analysis

### Issue 1: Whether Mr. Siddharth Chauhan, the promoter of the Corporate Debtor, is ineligible to present a …

**Ratio:** Section 29A of the Insolvency and Bankruptcy Code, 2016 disqualifies certain individuals

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**Reasoning:** The court reasoned that the Corporate Debtor's account was declared a non-performing

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**Interpretation:** Section 29A is interpreted strictly to prevent individuals who have contributed

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**Application:** The court applied the provisions of Section 29A to the specific facts of the

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## Parties

- **Judges:** BACHU VENKAT…; BINOD KUMAR…
- **Appellants:** Harbans Singh &…
- **Respondents:** Sidhartha…; Devender Singh &…

## Timeline

- **2018-07-19 — CIRP Star…**: CIRP with regard to the…
- **2019-03-05 — MSME Applicat…**: Application for MSME…

## 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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