# In the matter of Snehanjali and S.B. Developers Private Limited

> NCLT judgment dated 2025-01-24. Citation: TCN-2025-NCLT-00583. This Interlocutory Application (I.A. (I.B.C.) No.22/MB/2025) was filed in CP (IB)…

- **Court:** NCLT
- **Order date:** 24 Jan 2025
- **Citation:** TCN-2025-NCLT-00583
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snehanjali-and-sb-developers-private-limited-2caaa138

## Summary

### Background

This Interlocutory Application (I.A. (I.B.C.) No.22/MB/2025) was filed in CP (IB) No.1046/MB/2023 (Main Application) on 23.12.2024 by Mr. Ramprasad Vishwanath Gupta, under Section 43 of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016. The applicant sought a declaration that certain transactions undertaken by M/s Snehanjali and S.B. Developers Private Limited (Corporate Debtor) in favor of Kotak Mahindra Investments Ltd. were preferential transactions under Section 43 of the Code. The Corporate Debtor was admitted to Corporate Insolvency Resolution Process (CIRP) in C.P. (IB) No.1046/MB/2023 under Section 7 of the IBC vide order dated 07.03.2024. Mr. Dinesh Kumar Deora was appointed as the IRP and later

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## Facts

Mr. Ramprasad Vishwanath Gupta filed an Interlocutory Application (I.A. No.22/MB/2025) in CP (IB) No.1046/MB/2023, seeking a declaration that certain transactions by M/s Snehanjali and S.B. Developers Private Limited (Corporate Debtor) in favor of Kotak Mahindra Investments Ltd. were preferential under Section 43 of the Insolvency and Bankruptcy Code (IBC). The Corporate Debtor was admitted into CIRP under Section 7 of the IBC. The applicant alleged that the Corporate Debtor, facing financial difficulties, preferentially repaid a loan of Rs.90,00,00,000/- to Kotak Mahindra Investments Ltd. (Respondent No.2), a secured financial creditor, using funds diverted from homebuyers, violating Section 43 and the statutory waterfall mechanism under Section 53 of the Code. The

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## Issues and analysis

### Issue 1: Whether the applicant, as an individual homebuyer, has the locus standi to file an application …

**Ratio:** Section 43(1) of the Insolvency and Bankruptcy Code explicitly empowers only the

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**Reasoning:** The NCLT observed that the language of Section 43 is clear and unambiguous, granting the

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**Interpretation:** Section 43 of the IBC is interpreted to mean that only the RP or the

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**Application:** In this case, the applicant, being an individual homebuyer, does not possess

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Ramprasad…
- **Respondents:** M/s. SNEHANJALI…; Dinesh Kuma…

## Timeline

- **2023-01-01 — Construction…**: Construction on the project site was completely stopped by the Corporate Debtor during…
- **2024-03-07 — CIRP Init…**: The Corporate Debtor was admitted to Corporate Insolvency Resolution Process (CIRP) in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 43 — Preferential transactions and relevant time](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-43)

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