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

> NCLT judgment dated 2024-08-14. Citation: TCN-2024-NCLT-00786. This case involves an application (IA No. 3693/MB/2024) filed by Mr. Dinesh Chaplot and Mr.…

- **Court:** NCLT
- **Order date:** 14 Aug 2024
- **Citation:** TCN-2024-NCLT-00786
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snehanjali-and-sb-developers-private-limited-6a6de415

## Summary

### Background

This case involves an application (IA No. 3693/MB/2024) filed by Mr. Dinesh Chaplot and Mr. Harsh Kishor Sawla under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 11 of the National Company Law Tribunal Rules, 2016, seeking to quash Form G dated 05.05.2024. Form G relates to the invitation for Expression of Interest (EOI) in the Corporate Insolvency Resolution Process (CIRP) of M/S Snehanjali and S.B. Developers Private Limited, the Corporate Debtor (CD). The applicants, who are homebuyers and past developers, were barred from submitting EOIs due to a condition imposed by the Resolution Professional (RP). The applicants argue that this restriction lacks legal basis and pray to be allowed to submit EOIs.

## Facts

Mr. Dinesh Chaplot and Mr. Harsh Kishor Sawla, the applicants, filed an application to quash Form G, which invited Prospective Resolution Applicants (PRAs) for M/S Snehanjali and S.B. Developers Private Limited, the Corporate Debtor (CD). The applicants, who are homebuyers and past developers associated with the CD, were barred from submitting EOIs due to a condition imposed by the Resolution Professional (RP). The applicants had purchased seven flats from the CD in August 2016, with agreements for sale dated 10.08.2016 and 11.08.2016. The date of possession was initially set for 31.03.2020, later changed to 31.03.2022, but the CD failed to deliver possession. The CIRP was initiated against the CD, and the RP issued Form G on 05.05.2024, with a submission deadline of

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) was justified in laying down a criterion in Form G that …

**Ratio:** The RP's duty to lay down criteria for inviting prospective resolution applicants (PRAs)

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**Reasoning:** The NCLT reasoned that the RP's decision to exclude existing homebuyers and past

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**Interpretation:** Section 25(2)(h) of the IBC allows the RP to invite prospective resolution

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**Application:** In this case, the NCLT found that the RP's decision to exclude existing

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## Parties

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

## Timeline

- **2016-08-01 — Purchase of…**: Applicants purchased seven…
- **2016-08-10 — Agreement f…**: Applicants entered into an…

## 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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