# In the matter of Sonata Realty Private Limited

> NCLT judgment dated 2025-03-18. Citation: TCN-2025-NCLT-01047. Fountain Square Residents and Commercial Welfare Association, Mumbai (Applicant), filed IA…

- **Court:** NCLT
- **Order date:** 18 Mar 2025
- **Citation:** TCN-2025-NCLT-01047
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/sonata-realty-private-limited-fef2431a

## Summary

### Background

Fountain Square Residents and Commercial Welfare Association, Mumbai (Applicant), filed IA 4615/2024 against the Interim Resolution Professional of the Corporate Debtor, Sonata Realty Private Limited, seeking reliefs under Section 60(5) and 65 of the Insolvency and Bankruptcy Code, 2016.

## Facts

The Applicant is an association of purchasers of flats/shops in a project to be developed jointly by the Corporate Debtor and Shree Shubh Builders Pvt. Ltd.

The Applicant filed a suit before the Bombay High Court seeking a declaration that the letters of allotment issued by the Corporate Debtor and Shree Shubh Builders Pvt. Ltd. are valid.

Nitco Realities Private Limited, the purported Financial Creditor, expressed its intention to support the suit filed by the Applicant against the Corporate Debtor.

The Applicant alleges that the purported Financial Creditor came to the Tribunal with a false and concocted case and suppressed several documents.

The Resolution Professional categorized 15 creditors as FCs and 1 creditor as an OC, rejecting the claims of 104 entities.

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## Issues and analysis

### Issue 1: Whether the initiation of CIRP against the …

**Ratio:** Section 65 of the IBC allows the Adjudicating Authority to consider allegations of

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**Reasoning:** The Tribunal found that the Respondent No. 2 misrepresented facts and suppressed the

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**Interpretation:** The Tribunal interpreted the MOU and related documents to conclude that the

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**Application:** Based on the finding of misrepresentation and fraudulent initiation, the

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Fountain Square…
- **Respondents:** Sonata Realty…; Jignesh…; +1 more
- **Other parties:** NITCO Realties…; Nilufer D…; +1 more
- **Advocates:** Shyam Ka…; Nausher…; +2 more

## Timeline

- **2024-06-04 — Order Da…**: Order passed by the Tribunal…
- **2024-06-09 — Public Annou…**: Public announcement issued by the Respondent intimating initiation of CIRP against the…

## 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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