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

> NCLT judgment dated 2024-08-07. Citation: TCN-2024-NCLT-00860. The case involves a concern raised by the Counsel for the Applicant regarding an additional…

- **Court:** NCLT
- **Order date:** 7 Aug 2024
- **Citation:** TCN-2024-NCLT-00860
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snehanjali-and-sb-developers-private-limited-e87ba6c4

## Summary

### Background

The case involves a concern raised by the Counsel for the Applicant regarding an additional condition imposed by the Resolution Professional (RP) in Form G. This condition states that existing home buyers and past developers associated with the Corporate Debtor (CD), as well as related entities, are ineligible to submit a Resolution Plan. The applicant argues that this condition lacks legal basis and is prejudicial to the interests of home buyers and past developers. The RP, however, contends that the condition was incorporated in Form G under Section 25(2)(h) of the IBC, with the approval of the Committee of Creditors (CoC), which consists only of home buyers represented by an Authorised Representative (AR).

## Facts

Mr. Santosh Shetty filed an application against Snehanjali And S.B. Developers Private Limited. The Counsel for the Applicant raised a concern that the RP has put an additional condition stating that existing home buyers and past developers associated with the CD, as well as related entities, are not eligible to submit a Resolution Plan. The RP argues that the condition was incorporated in Form G under Section 25(2)(h) of the IBC, with the approval of the CoC. The CoC consists of only home buyers and is represented by the Authorised Representative (AR). The court found that the RP's criterion for excluding existing home buyers and past developers was not justified based on the complexity and scale of the CD's business or any other condition made by the IBBI. The court

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## Issues and analysis

### Issue 1: Whether the Resolution Professional (RP) can impose an additional condition in Form G, excluding …

**Ratio:** The RP's power to lay down conditions under Section 25(2)(h) of the IBC is subject to the

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**Reasoning:** The court reasoned that the RP's counsel did not demonstrate that the criterion for

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

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**Application:** In this case, the court found that the RP's additional condition was not

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## Parties

- **Judges:** SANJIV…; K. R. SAJI…
- **Appellants:** Santosh S…
- **Respondents:** Snehanjali and…; Snehanjali And…

## Timeline

- **2024-08-07 — Order Sheet of…**: Order sheet of hearing…
- **2024-08-08 — Next Hearin…**: Main C.P. listed for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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