When CIRP has been initiated, the Corporate Debtor with whom no prior contractual arrangement is proved, cannot be forced to continue with the same treatment – Ms. Indrani Brahmachari Vs. Mr. Chandra Prakash RP M/s. Granite Gate Properties Pvt. Ltd. – NCLAT New Delhi
NCLAT held that under the scheme of IBC, the allottee can be dealt with under Resolution Plan or if the Corporate Debtor goes into Liquidation, the allottees would get treatment as per provisions but the same would have to be similar to all. Even if the veil is lifted, what appears is that one of the directors of the holding company gave some preferential benefit to the Appellant. However, when CIRP has been initiated, the Corporate Debtor with whom no prior contractual arrangement is proved, cannot be forced to continue with the same treatment. For the above reasons although we differ from the observations of the Adjudicating Authority in Impugned Order, relief as is being sought by the Appellant cannot be granted.
