# In the matter of Sovreign Developers and Infrastructure Limited

> NCLT judgment dated 2024-04-25. Citation: TCN-2024-NCLT-01594. The case involves an application (IA No. 270 of 2021) filed by Mr. C.S. Harikumar, a landowner,…

- **Court:** NCLT
- **Order date:** 25 Apr 2024
- **Citation:** TCN-2024-NCLT-01594
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sovreign-developers-and-infrastructure-limited-4e43f99a

## Summary

### Background

The case involves an application (IA No. 270 of 2021) filed by Mr. C.S. Harikumar, a landowner, against M/s. Sovereign Developers and Infrastructure Ltd. (Corporate Debtor) concerning a Joint Development Agreement (JDA) for a property in Bagalagunte Village, Bengaluru. The applicant sought various reliefs, including setting aside the Process Memorandum, directing the Resolution Professional (RP) to consult with the applicant, and restoring possession of the property. The Corporate Debtor initiated Corporate Insolvency Resolution Proceedings (CIRP) which commenced on 16.07.2019. The applicant's previous application (IA No. 25/2020) seeking exclusion of the property from the Corporate Debtor's assets was dismissed. The RP received a Resolution Plan from M/s. V. R.

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## Facts

Mr. C.S. Harikumar owned 9 acres and 2 guntas of land in Bagalagunte Village, Bengaluru. On 28.03.2011, he entered into a Joint Development Agreement (JDA) with M/s. Sovereign Developers and Infrastructure Ltd. (Corporate Debtor) to develop the property. A General Power of Attorney (GPA) was also executed on the same date. The JDA stipulated a 72:28 sharing ratio in favor of the Corporate Debtor. The Corporate Debtor was to complete the project within 36 months from the date of issuance of the sanctioned plan and construction license. Plans were sanctioned on 13.07.2012. The Corporate Debtor failed to make significant progress, and the Corporation Authorities stopped the work in January 2014. On 09.10.2014, the Applicant issued a notice terminating the JDA and GPA. The

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## Issues and analysis

### Issue 1: Whether the relief sought by the Applicant violates Section 14(1)(d) of the Insolvency and …

**Ratio:** Section 14(1)(d) of the IBC imposes a moratorium, barring the recovery of property by an

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**Reasoning:** The Successful Resolution Applicant (SRA) argued that the relief sought by the Applicant

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**Interpretation:** Section 14(1)(d) aims to protect the assets of the Corporate Debtor during the

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**Application:** The Applicant's request for restoration of possession of the Schedule Property

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## Parties

- **Judges:** K. Bi…; Manoj Kumar…
- **Appellants:** C.S. Hari…
- **Respondents:** M/s. Sovereign…

## Timeline

- **2011-03-28 — Joint Development…**: Mr. C.S. Harikumar enters into a Joint Development Agreement (JDA) with M/s. Sovereign…
- **2012-07-13 — Plan Sanc…**: Plans for the Schedule…

## 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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