# Mr. Rishi Gupta & Mr. Sandeep Jain vs. IDBI Trusteeship Services Limited & Ors.

> NCLT judgment dated 2026-07-10. Citation: TCN-2026-NCLT-00770. The Applicants, ex-directors of Shree Vardhman Buildprop Private Limited (Corporate Debtor),…

- **Court:** NCLT
- **Order date:** 10 Jul 2026
- **Citation:** TCN-2026-NCLT-00770
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/mr-rishi-gupta-mr-sandeep-jain-vs-idbi-trusteeship-services-limited-ors-j9n0e

## Summary

### Background

The Applicants, ex-directors of Shree Vardhman Buildprop Private Limited (Corporate Debtor), filed an application under Rule 11 of the NCLT Rules, 2016. They sought to remove Respondent No. 3 (Kautilya Finance BV) and Respondent No. 4 (Kautilya Real Estate Fund) from the Committee of Creditors (CoC) of the Corporate Debtor, alleging they are 'related parties' under Section 5(24) of the IBC. They also requested Respondent No. 2 (Ducturus Resolution Professional Private Limited), the Interim Resolution Professional (IRP), to halt further CoC meetings until related Supreme Court appeals were decided. The Corporate Debtor had obtained financial assistance from Respondent No. 3 and No. 4 through debentures, with Respondent No. 1 (IDBI Trusteeship Services Limited) acting as

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## Facts

Mr. Rishi Gupta and Mr. Sandeep Jain are ex-directors of Shree Vardhman Buildprop Private Limited (Corporate Debtor).

The Applicants filed I.A. 3699 ND 2024 under Rule 11 of the National Company Law Tribunal Rules, 2016.

The Adjudicating Authority initiated CIRP of the Corporate Debtor on 29.04.2024 and appointed Ducturus Resolution Professional Private Limited (Respondent No. 2) as the Interim Resolution Professional (IRP).

The Corporate Debtor developed a Residential Group Housing Project named "Shree Vardhman Mantra".

DSS Infrastructures Private Limited, a wholly-owned subsidiary of the Corporate Debtor, transferred Development Rights over the Project Land to the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the Applicants (suspended directors) have the locus standi to challenge the constitution of …

**Ratio:** Suspended directors, while their powers are suspended upon CIRP commencement, do not

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**Reasoning:** The constitution of the Committee of Creditors is the very foundation of the CIRP. Any

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**Interpretation:** The role of suspended directors in CIRP extends beyond mere observation,

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**Application:** The Adjudicating Authority found that the Applicants had the locus standi to

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; ATUL CHAT…
- **Appellants:** Rishi G…; Sandeep…
- **Respondents:** Shree Vardhman…; IDBI Trusteeship…; +3 more
- **Other parties:** Certain individual…
- **Advocates:** Abhishek…; Sakshi K…; +9 more

## Timeline

- **2016-06-14 — Debenture Subscription…**: Debenture Subscription Agreement (DSA) executed between Respondent No. 3, Corporate…
- **2016-07-18 — Hypothecati…**: Hypothecation Deed executed, hypothecating amounts in the Utilization Escrow Account to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(24) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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