# Rajeev Sharma and Ors. vs. Gayatri Hospitality and Realcon Limited

> NCLT judgment dated 2026-10-05. Citation: TCN-2026-NCLT-01100. An application was filed by 170 home allottees (Financial Creditors) against Gayatri…

- **Court:** NCLT
- **Order date:** 5 Oct 2026
- **Citation:** TCN-2026-NCLT-01100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/gayatri-hospitality-and-realcon-limited-49r7p

## Summary

### Background

An application was filed by 170 home allottees (Financial Creditors) against Gayatri Hospitality and Realcon Limited (Corporate Debtor) under Section 7 of the IBC for initiating CIRP due to the Corporate Debtor's failure to deliver possession of units in the "Gayatri Aura" project. The total amount in default was over Rs. 19 crores. An earlier Section 7 petition was set aside by NCLAT due to procedural non-compliance with the threshold requirement, a decision upheld by the Supreme Court. The Corporate Debtor argued that the current application was not maintainable, that no default occurred due to force majeure events (land encroachment, "Zero Period" by GNIDA, COVID-19), and that many applicants did not qualify as genuine financial creditors, thus

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## Facts

An application has been filed by 170 allottees (Financial Creditors) for 146 units under Section 7 of the IBC against Gayatri Hospitality and Realcon Limited (Corporate Debtor).

The total amount in default is Rs. 19,34,94,348/- along with interest at 18% per annum.

An earlier Section 7 petition (CP (IB) No. 288(PB)/2019) was initially filed by eight allottees, with subsequent impleadment applications increasing the number of petitioners to 107.

The Corporate Debtor was admitted into CIRP by order dated 04.03.2024, but the NCLAT set aside the admission on 08.07.2025 due to non-compliance with the third proviso to Section 7 (impleadment applications filed beyond the prescribed period).

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## Issues and analysis

### Issue 1: Whether the present Petition is maintainable in the light of judgment of Hon'ble NCLAT dated …

**Ratio:** The Supreme Court has clarified that the consequence of withdrawal of a Section 7

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**Reasoning:** The NCLAT order dated 08.07.2025 set aside the earlier admission of CIRP because the

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**Interpretation:** The NCLAT's directions regarding settlement proposals were based on the

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**Application:** The NCLAT judgment dated 08.07.2025 does not preclude the Applicants from

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; ATUL CHAT…
- **Appellants:** RAJEEV SHARMA AND…
- **Respondents:** GAYATRI HOSPITALIT…
- **Other parties:** 170 allo…; 1,124 all…; +4 more
- **Advocates:** Aishvary…; Lucky S…; +6 more

## Timeline

- **2010 — Project Land A…**: Project land was…
- **2011-2016 — Unit Boo…**: Financial Creditors…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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