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

> NCLT judgment dated 2024-10-08. Citation: TCN-2024-NCLT-00462. This is an Interlocutory Application (IA) No. 3600/MB/2024 filed by Mr. Harsh Kishor Sawla and…

- **Court:** NCLT
- **Order date:** 8 Oct 2024
- **Citation:** TCN-2024-NCLT-00462
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snehanjali-and-sb-developers-private-limited-70547a7d

## Summary

### Background

This is an Interlocutory Application (IA) No. 3600/MB/2024 filed by Mr. Harsh Kishor Sawla and others, who are financial creditors and homebuyers, against the Resolution Professional (RP) of M/S Snehanjali and S.B. Developers Private Limited. The applicants challenge the RP's decision regarding their financial claims in the Corporate Insolvency Resolution Process (CIRP). The applicants had booked 15 flats in 2016 from "S. B. Developers," a partnership firm that was later converted into a company which is now the Corporate Debtor.

## Facts

In 2016, Mr. Harsh Kishor Sawla, Mr. Kavan Jayant Sawla, Mrs. Beena Jayant Sawla, and Mrs. Bhavna Sawla booked 15 flats in a housing project called O2 undertaken by M/S Snehanjali and S.B. Developers Private Limited. The applicants are financial creditors and homebuyers. The applicants entered into Agreements for Sale and supplementary agreements with "SB Developers," a partnership firm that later became the Corporate Debtor. The supplementary agreements included clauses about penalties for delayed possession. The applicants paid a principal amount of Rs.12,82,15,000/- towards the booking/ purchase of flats. The Respondent/RP admitted only an amount of Rs.1,02,96,000/-. The RP's decision was based on a Transaction Audit Report (TAR) suggesting circular

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## Issues and analysis

### Issue 1: Whether the Respondent/RP has rightly rejected part of the claims of the Applicants with regard to …

**Ratio:** The RP's role is administrative, not adjudicatory. The RP must verify claims based on

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**Reasoning:** The NCLT found that the RP failed to properly consider the registered agreements for sale

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**Interpretation:** The NCLT interpreted the relevant sections of the IBC and CIRP Regulations to

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**Application:** The NCLT applied the legal principles to the specific facts, finding that the

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## Parties

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

## Timeline

- **2016-01-01 — Booking of…**: Applicants booked 15…
- **2016-08-10 — Agreements f…**: Applicants entered into Agreements for Sale with “S.B. Developers” for the purchase of 15…

## 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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