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

> NCLT judgment dated 2024-10-08. Citation: TCN-2024-NCLT-00466. 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-00466
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snehanjali-and-sb-developers-private-limited-eed598a1

## 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 Corporate Debtor. 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 with "S. B. Developers," a partnership firm later converted into the Corporate Debtor. The RP partially admitted the claims, leading to this application.

## Facts

In 2016, Mr. Harsh Kishor Sawla, Mr. Kavan Jayant Sawla, Mrs. Beena Jayant Sawla, and Mrs. Bhavna Sawla (the Applicants) booked 15 flats in a housing project called O2 undertaken by M/S Snehanjali and S.B. Developers Private Limited (the Corporate Debtor). The Applicants are considered financial creditors and homebuyers. The Applicants purchased the flats from "S. B. Developers," a partnership firm that was later converted into the Corporate Debtor on 14.01.2019. Mr. Kishor Sawla and Mr. Jayant Sawla, fathers/husbands of the Applicants, were partners in "SB Developers" until their retirement in 2016. Supplementary agreements were executed between the Applicants and “SB Developers” including clauses about penalties for delayed possession. The

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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 is required to verify claims based on the insolvency commencement date and

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**Reasoning:** The Tribunal found that the RP's rejection of the principal amount was arbitrary and

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**Interpretation:** The RP's role is to verify claims based on available records and evidence, but

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**Application:** The Tribunal directed the Respondent/RP to verify the claims with reference to

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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…
- **2019-01-14 — Conversion to…**: "S. B. Developers" partnership…

## 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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