Single allotee’s application filed prior to amendment by the Insolvency and Bankruptcy Code (Amendment) Act, 2020, w.e.f. 28.12.2019 cannot be rejected – Mr. Srinivas Manthena Vs. M/S. Emaar Hills Township private Limited  – NCLT Hyderabad Bench

In view of the amendment by the Insolvency and Bankruptcy Code (Amendment) Act, 2020, w.e.f. 28.12.2019 in procedure to file application under section 7 of IBC by Allotee/Financial Creditor against the Corporate Debtor, the question before this Adjudicating Authority is whether the Application filed by single allotee under section 7 of IBC and pending for consideration of this Adjudicating Authority is to be rejected holding to be not maintainable or allotees in same project who has already filed such applications and pending for consideration are allowed to peruse their application jointly?

The Adjudicating Authority held that in short upon going through the ruling of Hon’ble Supreme Court in Manish Kumar Vs. Union of India and another (2021) ibclaw.in 16 SC, we are of considered opinion that single allotee’s application filed prior to amendment cannot be rejected. We further hold that the allotee’s in same project against same corporate debtor are allow to pursue their applications jointly. We direct that all such applications shall be heard jointly.

Single allotee’s application filed prior to amendment by the Insolvency and Bankruptcy Code (Amendment) Act, 2020, w.e.f. 28.12.2019 cannot be rejected – Mr. Srinivas Manthena Vs. M/S. Emaar Hills Township private Limited  – NCLT Hyderabad Bench Read Post »