# Kerala Financial Corporation vs. Sharon Hills Residential Association & Ors.

> NCLT judgment dated 17 Apr 2026. Citation: TCN-2026-NCLT-00417. Kerala Financial Corporation (KFC), a financial creditor, filed an application…

- **Court:** NCLT
- **Order date:** 17 Apr 2026
- **Citation:** TCN-2026-NCLT-00417
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/kerala-financial-corporation-vs-sharon-hills-residential-association-ors-j6apk

## Summary

### Background

Kerala Financial Corporation (KFC), a financial creditor, filed an application (IA(IBC)/73/KOB/2026) to implead itself as an additional respondent in another application (IA(IBC)/99/KOB/2025) filed by Sharon Hills Residential Association (SRA). The SRA's application seeks to remove impediments in the implementation of a resolution plan. The original Corporate Insolvency Resolution Process (CIRP) against M/s. Samson and Sons Builders & Developers (P) Ltd. was initiated on 03.11.2021 based on a petition filed by Mr. Vijayakumaran J. for an operational debt. A resolution plan, submitted by SRA, was approved by the Committee of Creditors on 30.07.2024 and subsequently by the Adjudicating Authority on 20.12.2024, despite KFC, a dissenting financial creditor with 19.48%

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## Facts

Mr. Vijayakumaran J., proprietor of M/s. V.J. Constructions, filed a petition under Section 9 of the IBC against M/s. Samson and Sons Builders & Developers (P) Ltd. for an operational debt of Rs. 1,34,36,943/-.

The Adjudicating Authority admitted the petition on 03.11.2021 and initiated Corporate Insolvency Resolution Process (CIRP).

K. Parameswaran Nair was appointed as the Resolution Professional (RP) on 10.01.2022.

Kerala Financial Corporation (KFC) holds 19.48% voting rights in the Committee of Creditors (CoC).

A resolution plan for the 'Sharon Hills' project, submitted by Sharon Hills Residential Association (SRA), was approved by the CoC in its 17th meeting on 30.07.2024 with 71.30% voting share, despite KFC's dissent.

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## Issues and analysis

### Issue 1: Whether a dissenting Financial Creditor, after the approval of a resolution plan by the …

**Ratio:** The judicial discretion for impleadment of parties must be exercised on sound principles.

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**Reasoning:** The Adjudicating Authority perused the judgment in Union of India v. Oriental Bank of

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**Interpretation:** The NCLT interpreted the Insolvency and Bankruptcy Code (IBC) to mean that the

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**Application:** Kerala Financial Corporation, despite being a financial creditor and having

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## Parties

- **Judges:** SHRI. VINA…
- **Appellants:** Kerala Financial…
- **Respondents:** M/s. Samson and…; Sharon Hills…; +7 more
- **Other parties:** Insolvency and…; Corporate…; +8 more

## Timeline

- **2021-11-03 — CIRP Init…**: Petition under Section 9 of IBC filed by Mr. Vijayakumaran J. against the Corporate…
- **2022-01-10 — RP Appoin…**: 2nd Respondent (K. Parameswaran Nair)…

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