# In the matter of Ansal Crown Heights Flat Buyers Association (Regd.) vs. Ansal Crown Infrabuild Pvt. Ltd. & Ors.

> SC judgment dated 2024-01-17. Citation: TCN-2024-SC-00106. The case involves appeals against orders related to the execution of a National Commission…

- **Court:** SC
- **Order date:** 17 Jan 2024
- **Citation:** TCN-2024-SC-00106
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/ansal-crown-heights-flat-buyers-association-regd-vs-ansal-crown-infrabuild-pvt-l-8c1c7074

## Summary

### Background

The case involves appeals against orders related to the execution of a National Commission directive against a developer, Ansal Crown Infrabuild Pvt. Ltd., concerning a project where homebuyers were to be given possession of allotted flats. The National Commission had directed the developer to complete the project and hand over possession, or refund the deposited amount with interest. The developer became subject to insolvency proceedings under Section 9 of the IBC, leading to a moratorium under Section 14 of the IBC. The appellants sought to execute the National Commission's direction against the company and its directors/officers.

## Facts

Ansal Crown Heights Flat Buyers Association (Regd.) filed a complaint before the National Consumer Disputes Redressal Commission against Ansal Crown Infrabuild Pvt. Ltd. & Ors. The National Commission directed the developer to complete a project and handover possession of flats or refund the deposited amount with interest. The developer became subject to insolvency proceedings under Section 9 of the IBC, leading to a moratorium under Section 14 of the IBC. The appellants sought to execute the National Commission's direction against the company and its directors/officers. The National Commission held that the decree cannot be executed against the company due to the moratorium under Section 14 of the IBC. The appellants argued that there is no prohibition on

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## Issues and analysis

### Issue 1: Whether the moratorium under Section 14 of the IBC prevents the execution of the National …

**Ratio:** Notwithstanding the moratorium, the liability, if any, of the directors/officers will

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**Reasoning:** The court relied on its earlier judgment in P. Mohanraj(supra), which stated that

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**Interpretation:** The moratorium under Section 14 of the IBC applies only to the corporate debtor

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**Application:** The court set aside the impugned judgments and orders and remitted the

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## Parties

- **Judges:** ABHAY S…; UJJAL B…
- **Appellants:** ANSAL CROWN…
- **Respondents:** M/S ANSAL CROWN…; M/S Ansal Crown…

## Timeline

- **2023-01-01 — Civil Appea…**: Civil Appeal Nos. 4480-4481 of 2023…
- **N/A — National Commission…**: National Commission directs the Developer to complete the project and handover the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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