# The Authorised Representative for Granite Gate Properties Private Limited, Ms. Rakesh Verma vs. M/s New Okhla Industrial Development Authority and Ors.

> SC judgment dated 2026-09-03. Citation: TCN-2026-SC-00103. A developer, M/s Granite Gate Properties Private Limited, leased land from New Okhla Industrial…

- **Court:** SC
- **Order date:** 3 Sept 2026
- **Citation:** TCN-2026-SC-00103
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/the-authorised-representative-for-granite-gate-properties-private-limited-ms-rak-t0v7e

## Summary

### Background

A developer, M/s Granite Gate Properties Private Limited, leased land from New Okhla Industrial Development Authority (NOIDA) for high-rise projects ('Lotus Boulevard' and 'Lotus Panache'). The developer was declared a Corporate Debtor, and home buyers formed the Committee of Creditors (CoC) as Financial Creditors. A Resolution Plan was approved, but a dispute arose regarding time extension charges imposed by NOIDA. The NCLAT had directed these charges to be treated as CIRP costs for a maximum of three years. NOIDA appealed, seeking these charges for a longer period, while the Authorized Representative for home buyers argued against their inclusion as CIRP costs, especially since home buyers had pooled resources to continue construction.

## Facts

M/s Granite Gate Properties Private Limited, a developer, took perpetual lease of two plots from New Okhla Industrial Development Authority (NOIDA) for high-rise buildings and apartment complexes.

The projects were named 'Lotus Boulevard' (Sector 100) and 'Lotus Panache' (Sector 110).

The developer, M/s Granite Gate Properties Private Limited, ran into financial difficulties and was declared a Corporate Debtor (CD).

A Committee of Creditors (CoC) was constituted, comprising home buyers who formed a Class of Financial Creditors.

A Resolution Plan was approved and was to be implemented through a Successful Resolution Applicant (SRA), M/s SMV Agencies Private Limited.

…

## Issues and analysis

### Issue 1: Whether the time extension charges imposed by …

**Ratio:** The time extension charges, being penal in nature and arising from the Corporate Debtor's

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**Reasoning:** The Court reasoned that the default was caused by the developer (Corporate Debtor), who

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**Interpretation:** The Court interpreted the time extension charges as penal, designed to deter

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**Application:** The Court applied these principles to the specific facts, where home buyers and

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## Parties

- **Judges:** K. VINOD CHANDRAN,…; J.B. Pardiw…
- **Appellants:** The Authorised…; M/s New Okhla…
- **Respondents:** M/s Granite Gate…; M/s New Okhla…; +2 more
- **Other parties:** Home Bu…; Resolution…
- **Advocates:** Dhruv M…; Rachit M…; +1 more

## Timeline

- **2016 — Project Completion…**: The project was originally slated…
- **2016-12 — First Year of Delay…**: Time extension charges were claimed by…

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