2025 (3) TMI 1253 - HC - IBC

Direction to hand over the possession of the constructed flats/units in Phase-I of the Greenopolis Project to the persons who had paid monies directly to the said concern - HELD THAT - The homebuyers represented by GWA who are opposing the present application had made their investments and payments to TCSPL. Consequently they cannot insist or compel Orris to allot residential flats/units in their favor. It goes without saying that they must pursue their claims in the CIRP proceedings concerning TCSPL which remain pending before the NCLT. The order dated 01.07.2021 passed by the Supreme Court and the subsequent order dated 29.03.2022 passed by the NCLT categorically lay down that the TCSPL has no right title or interest in the Greenopolis Project and they have no right to dispose of the property or sale of any units in the same. In essence the Greenopolis Project is not an asset of TCSPL and therefore does not fall within the scope of CIRP Proceedings concerning TCSPL. Considering the entire gamut of the case and its larger ramifications where TCPSL and its sister concerns are under investigation by the Serious Fraud Investigation Unit and Orris and other companies are facing inquiries by the Registrar under Chapter XIV of the Companies Act 2013 the issue in question are undoubtedly interwoven. Nevertheless the lengthy and excruciating litigation process involved should not impede the applicant GWC from seeking appropriate relief for its members - Unhesitatingly the sheer audacity of the objector namely rival GWA is apparent. Repeated attempts have been made to deflect attention from TCSPL and its sister concerns which have allegedly defrauded numerous homebuyers. Instead with ulterior motives the objector seeks to divert focus to a separate set of homebuyers who are rightfully entitled to possession of constructed residential flats/units from Orris. The learned NCLT has already passed a detailed order dated 17.12.2024 and has not extended the status quo concerning the allotment of any completed residential flats/units to the home buyers whose cause is being espoused by the present applicant/GWC. Conclusion - There is no legal impediment in allowing handing over of possession of 512 completed flats in terms of occupancy certificate issued on 01.10.2024 by Orris to its allottees who are members of the applicant/GWC. Application allowed.

1. ISSUES PRESENTED and CONSIDERED

The primary issues considered in this legal judgment involve:

Whether Orris Infrastructure Pvt. Ltd. (Orris) should be directed to hand over possession of flats in Phase-I of the Greenopolis Project to homebuyers who made payments directly to Orris.
Whether the claims of homebuyers who paid Three C Shelters Pvt. Ltd. (TCSPL) should be adjudicated separately in the Corporate Insolvency Resolution Process (CIRP) proceedings concerning TCSPL.
The legal standing of various orders passed by the National Company Law Tribunal (NCLT), Supreme Court, and Haryana Real Estate Regulatory Authority (HRERA) concerning the Greenopolis Project.
The implications of previous Supreme Court and NCLT orders on the current proceedings.

2. ISSUE-WISE DETAILED ANALYSIS

Issue: Possession of Flats by Orris

Relevant Legal Framework and Precedents: The legal framework involves the Code of Civil Procedure, 1908, the Insolvency and Bankruptcy Code (IBC), and relevant orders from the Supreme Court and NCLT. The Supreme Court's order dated 01.07.2021 and the NCLT's order dated 29.03.2022 are pivotal.
Court's Interpretation and Reasoning: The Court emphasized that Orris, having completed construction of the flats, holds the right to hand over possession to its allottees. The NCLT had previously determined that TCSPL had no right, title, or interest in the Greenopolis Project.
Key Evidence and Findings: The Court found that Orris completed 512 flats and was ready to offer possession to homebuyers who made payments to it. The NCLT's order confirmed Orris's ownership and rights over the project.
Application of Law to Facts: The Court applied the Supreme Court's and NCLT's directions, reinforcing Orris's right to proceed with the possession of flats to its allottees.
Treatment of Competing Arguments: The Court dismissed objections from GWA, representing TCSPL homebuyers, emphasizing that their claims should be pursued in CIRP proceedings against TCSPL.
Conclusions: The Court directed Orris to hand over possession of the flats to eligible homebuyers who paid Orris, affirming that the project is not an asset of TCSPL.

Issue: Claims of TCSPL Homebuyers

Relevant Legal Framework and Precedents: The CIRP under the IBC and the NCLT's jurisdiction are central to this issue, alongside the Supreme Court's directions.
Court's Interpretation and Reasoning: The Court reiterated that TCSPL homebuyers must pursue their claims through CIRP proceedings, as TCSPL has no legal claim over the Greenopolis Project.
Key Evidence and Findings: The NCLT's order and Supreme Court's directions highlighted TCSPL's lack of rights in the project.
Application of Law to Facts: The Court applied the NCLT's findings, emphasizing that TCSPL's claims do not affect Orris's rights over the project.
Treatment of Competing Arguments: The Court rejected GWA's attempts to claim rights over Orris's completed flats, reinforcing the separation of claims between Orris and TCSPL homebuyers.
Conclusions: The Court upheld the NCLT's findings, directing TCSPL homebuyers to seek redress in CIRP proceedings.

3. SIGNIFICANT HOLDINGS

Core Principles Established: The judgment reinforces the principle that rights over a project must be determined based on legal ownership and compliance with statutory requirements. The separation of claims between different sets of homebuyers is crucial.
Final Determinations on Each Issue: Orris is directed to hand over possession of flats to its eligible allottees, while TCSPL homebuyers must pursue their claims separately through CIRP proceedings.
Verbatim Quotes of Crucial Legal Reasoning: "The order dated 01.07.2021 passed by the Supreme Court and the subsequent order dated 29.03.2022 passed by the NCLT categorically lay down that the TCSPL has no right, title or interest in the 'Greenopolis Project' and they have no right to dispose of the property or sale of any units in the same."
Implications of Previous Orders: The Court emphasized that previous Supreme Court and NCLT orders effectively determine the rights and obligations of the parties involved, precluding re-litigation of settled issues.