# Shobhit J. Rajan vs. M/s ARCK Resolution Professionals LLP & Anr.

> NCLT judgment dated 2026-08-14. Citation: TCN-2026-NCLT-00956. Mr. Shobhit J. Rajan, the suspended director and original promoter of Ecstasy Realty Private…

- **Court:** NCLT
- **Order date:** 14 Aug 2026
- **Citation:** TCN-2026-NCLT-00956
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/shobhit-j-rajan-vs-ms-arck-resolution-professionals-llp-anr-ce6sv

## Summary

### Background

Mr. Shobhit J. Rajan, the suspended director and original promoter of Ecstasy Realty Private Limited (an MSME Corporate Debtor), filed an application challenging the rejection of his Expression of Interest (EOI) by the Resolution Professional. The rejection was based on his failure to submit a 'net worth certificate', a mandatory eligibility criterion of Rs. 400 crores set by the Committee of Creditors (CoC). The Applicant contended that as an MSME promoter, he was exempt from such criteria under Section 240A of the Insolvency and Bankruptcy Code (IBC).

## Facts

IA 2785 of 2026 was filed by Mr. Shobhit J. Rajan, the Suspended Director of Corporate Debtor, under Section 60(5) of the IBC, Rule 11 of NCLT Rules, and Regulations 13 and 14 of CIRP Regulations.

The Applicant challenged the rejection of his Expression of Interest (EOI) dated 22nd May 2026 by the Resolution Professional.

The rejection was based on the Applicant's non-submission of a 'net worth certificate'.

The Applicant claimed exemption from the net worth criteria under Section 240A of the Code, asserting his status as the original promoter of an MSME entity.

Ecstasy Realty Private Limited, the Corporate Debtor, is an MSME, registered as such on 27th February 2025, prior to the commencement of CIRP on 09th March 2026.

…

## Issues and analysis

### Issue 1: Whether the condition imposed by the Respondents in the Expression of Interest, requiring …

**Ratio:** Section 240A of the IBC provides specific exemptions only from clauses (c) and (h) of

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**Reasoning:** The NCLT found that Section 240A(1) explicitly limits exemptions to Sections 29A(c) and

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**Interpretation:** Section 240A is to be interpreted strictly, limiting its exemptions to the

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**Application:** The Applicant, despite being an MSME promoter, is not exempt from the CoC's

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## Parties

- **Judges:** Prabhat…; Sushil Mahadeorao…
- **Appellants:** Shobhit J.…
- **Respondents:** Ecstasy Realty…; M/s ARCK Resolutio…; +1 more
- **Other parties:** Committee of…; M/s ARCK Resolutio…
- **Advocates:** Aman Kac…; Rishabh D…; +10 more

## Timeline

- **2025-02-27 — MSME Regist…**: Ecstasy Realty Private Limited (Corporate Debtor) was registered as a Micro, Small,…
- **2026-03-09 — CIRP Commen…**: Corporate Insolvency Resolution Process (CIRP) commenced for Ecstasy Realty Private…

## 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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