Nucleus Raymount Villa and Apartment Owners Association & Anr. vs Dileep K.P. & Anr.

[Per; Justice Rakesh Kumar Jain (MJ)]

The Order shall dispose of two Appeals bearing Comp. App. (AT) (CH) (Ins.) No.133/2023 titled as `Nucleus Raymount Villa and Apartment Owners Association & Anr.’ Vs. `Dileep KP & Ors.’ (hereinafter referred to as the `first Appeal’) and Comp. App. (AT) (CH) (Ins.) No.140/2023 titled as `Nucleus Raymount Villa and Apartment Owners Association & Anr.’ Vs. `Dileep KP & Ors.’ (hereinafter referred to as the `second Appeal’).

The first Appeal is against the Order dated 17.03.2023, by which an Application filed by the Appellants for a direction to the Resolution Professional (`RP’) to convene the Meeting of the Committee of Creditors (`CoC’) to discuss about the proposed Plan has been dismissed whereas the second Appeal has been filed against the Order of the same date i.e., 17.03.2023, by which the Liquidation Proceedings were initiated with the appointment of Respondent No. 1 as the Liquidator.

Both the Appeals have been filed by the same Appellants. Learned Sr. Counsel for the Appellant Mr. E. Omprakash has submitted that post the Impugned Orders and in the pendency of these Appeals a Joint Memo of the Parties has been executed on 04.07.2023 amongst the Appellants, RP, CoC and the Prospective Resolution Applicant. The text of the Joint Memo reproduced in writing is reproduced as hereunder:

Counsel for the Appellant has submitted that 98% Members of the CoC are the Homebuyers of various Projects executed by the Corporate Debtor (Nucleus Premium Properties Pvt. Ltd.). It is submitted that since the Proposed Resolution Applicant has submitted the revised/modified Plan and in case it is put to Vote to the Members of the CoC then perhaps the matter may be resolved instead of taking the Company to the Liquidation. He has pressed the basic Principle enshrined in the Code that the first effort should be made for Resolution and not the Liquidation.

The contention raised by the Counsel for the Appellant has not been controverted by the Counsel for the Respondents, therefore, keeping in view the aforesaid facts and circumstances, we are also of the view that one more opportunity may be given to the Appellant as well as the Corporate Debtor for the purpose of resolving of the dispute much less the debt instead taking the Company to Liquidation.

Therefore, the Order of Liquidation is hereby kept in abeyance and the RP is directed to convene the Meeting of the CoC within one week from the date of passing of this Order and shall make all endeavors for Voting on the Resolution Plan by the Members of the CoC upto 31.07.2023. In case the Plan is approved by the CoC then the RP shall file necessary Application in accordance with law before the Adjudicating Authority without any delay.

It is also made clear that the Order of Liquidation shall remain suspended till 02.08.2023 and in case the CoC failed to approve the Plan, as argued by the Counsel for the Appellant that there is a strong likelihood that the Plan submitted by the PRA may be approved by the CoC, the Orders under challenge shall revive and the present Appeal shall be automatically dismissed.

With these observations the present Appeals are hereby disposed of.

Since, it is the case of Homebuyers, therefore, we have passed this Order in the peculiar facts and circumstances and the decision rendered herein may not be treated as a precedent in future.