[Reverse CIRP] NCLAT Closes CIRP Against Grand Reality Under Its Inherent Powers Upon Handover Of Flats To Homebuyers & Satisfaction Of Claims

Brief Facts

The appellant filed the appeal challenging the order passed by NCLT New Delhi dated 14.02.2023 under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”). On 26.09.2023, the NCLAT allowed an I.A. filed by Pax Homes LLP (Respondent No. 44), permitting it to proceed with construction under a Development Agreement, and initiated a “Reverse CIRP” process for delivering possession to flat buyers. Respondent No. 44 completed construction and secured Occupation Certificates. The Tribunal-appointed Local Commissioner affirmed this in her report.

The Appellant, along with the developer and homebuyers, had approached the Supreme Court, which directed the NCLAT on 30.05.2025 to expedite final disposal as the construction was complete and proceedings were being delayed by the Resolution Professional. The RP filed an affidavit on 10.07.2025, listing pending claims by five creditors, including the Income Tax Department. Subsequently, claims of four financial creditors were satisfied. The Income Tax Department confirmed that it had no objection to closing CIRP.

Observations:

The Tribunal observed that there was nothing left in the matter as the construction was complete in pursuance of its order dated 26.09.2023, and possession was handed over to all the claimant homebuyers, and there was no claimant left. Hence, it directed that the CIRP of the Corporate Debtor be closed.

The Tribunal relied upon the case of Sachin Malde v. Hemant Nanji Chheda & Anr. [Company Appeal (AT) (Ins.) No. 123 of 2024] where it was held that “There is no necessity to ask the Financial Creditor to file a Section 12A Application which shall only be an empty formality, since there are no other creditors and Financial Creditor has already settled.” The Tribunal also relied upon Gaurav Bhati v. Smriti Bhatia & Ors. [Company Appeal (AT) (Ins.) No. 881 of 2025], which reiterated that the court can exercise jurisdiction for settling the dispute between the parties despite asking the financial creditor to file an application under Section 12A. The Tribunal further referred to the decision of the Supreme Court in GLAS Trust Company LLC v. BYJU Raveendran & Ors., which held that “in appropriate cases inherent power can be exercised to close the proceedings.”

The NCLAT closed the CIRP of Grand Reality Pvt. Ltd. It discharged the Resolution Professional and set aside the impugned NCLT order.

Case Title: Satish Chander Verma v. Grand Reality Pvt. Ltd. & Ors.

Case No.: Company Appeal (AT) (Ins.) No. 289 of 2023 & I.A. No. 1401, 3827 of 2024 with Contempt Case (AT) No. 14 & 15 of 2024

For Appellant : Ms. Pooja M. Saigal, Sr. Advocate with Mr. Vivek Kumar, Mr. Piyush Singh, Mr. Akshay Srivastava, Soumain Tandon, Ms. Raveena Paniker, Mr. Suryansh Vashisth, Ms. Divya Sharma, Advocates.

For Respondents : Mr. Gautam Singhal, Mr. Rajat Chaudhary, Ms. Kanika Balhara for RP; Adv. Meghna Rao, Adv. Seoul Shah for R-2 to R-43; Mr. Rakesh Jindal; Mr. Dhaval Deshpande, Mr. Amir Arsiwala for R-44; Mr. Vipul Agarwal, Mr. Akshat Singh, Mr. Utkarsh K.

Date of Order: 15.07.2025

Click Here To Read/Download The Order