Pawan Kumar Goyal vs M/s Krishna Builder

The Corporate Debtor, Broad Homes Private Limited, was incorporated on 01.03.2013, as a Company Limited by shares (Non-govt. Company) having CIN: U70109DL2013PTC248916 under the Companies Act, 1956, with the Registrar of Companies, NCT of Delhi and Haryana. The Authorized Capital of the Company is Rs. 1,00,00,000, and its Paid-up Capital is Rs. 1,00,000. As per the records of the Ministry of Corporate Affairs (MCA), the last available financials of the company are as on 31.03.2024 and the last annual general meeting of the company was held on 23.09.2024. The Registered Address of the Corporate Debtor is at Flat No. 14, Ground Floor, Pul Pehlad Pur, DDA Mig Suraj Apartment, South Delhi, New Delhi, Delhi-110044. However, on the date of commencement of CIRP the registered office of the Corporate Debtor was not functional at the above referred address and as per MCA records the documents relating to Company were kept in office at Plot No. IB, 6th Floor, Ace Studio, Sector-126, Noida, Uttar Pradesh, India-201301. The Corporate Debtor is majorly engaged in the business of Real estate and is mainly providing services as contractor for construction of residential and commercial projects in Delhi NCR to its group companies.

It is submitted that an application under Section 7 of the Code was filed by the Financial Creditor, i.e., Hallow Securities Private Limited, against the Corporate Debtor, i.e., Broad Homes Private Limited, and the said application was admitted vide order dated 16.01.2025, passed by this Adjudicating Authority, and a moratorium was declared. Mr. Pawan Kumar Goyal was appointed as an Interim Resolution Professional who was subsequently appointed as the Resolution Professional.

It is further submitted that the Resolution Plan for the amount of Rs. 2,05,50,000/- was submitted by the SRA, namely Krishna Builder (Mr. Parveen Mittal – Sole Proprietor), which was approved by the CoC in its 8th CoC meeting convened on 04.09.2025 by 89.85% voting share in respect of the CIRP of the Corporate Debtor after considering its feasibility and viability. Therefore, I.A. (I.B.C)/64(ND)2025, filed by Mr. Pawan Kumar Goyal, Resolution Professional, seeking approval of the Resolution Plan, is pending adjudication before this Adjudicating Authority.

It is submitted that in terms of Regulation 6(1) and Regulation 6(2)(c) of the CIRP Regulations, Public Announcement in Form A was made on 18.01.2025 in Financial Express (English) and Jansatta (Hindi) and the last date for submission of proof of claim was specified as 30.01.2025. Pursuant to the public announcement, the Applicant received three claims, one from the financial creditor and two from the operational creditors in terms of provisions of the Code made therein with respect to the Corporate Debtor.

It is contended that in terms of Section 18(1)(a) of the Code, the Applicant collated all claims submitted by creditors pursuant to the public announcement and, after the determination of the financial position of the Corporate Debtor, constituted the CoC on 06.02.2025 in terms of Section 21 of the Code.

The RP received further claims from creditors and collated the claims after verification and reconstituted the CoC and maintained the updated list of Creditors as per the provisions of section 25(2)(e).

It is stated that the Applicant convened the 1st meeting of the CoC on 17.02.2025, wherein the Applicant was confirmed as the Resolution Professional of the Corporate Debtor regarding the commencement of the CIRP and sought the requisite information.

That the Applicant appointed 4 Registered Valuers pursuant to Regulation 27 of the CIRP Regulations to determine the fair value and liquidation value of the Corporate Debtor for 2 classes of assets i.e. Plant & Machinery and Securities & financial assets in accordance with regulation 35. The RP submitted that Corporate Debtor has no land & building and therefore no valuer was appointed for the category of land & building. The details of the valuers is as follows:

The 2nd CoC meeting was held on 15.03.2025, wherein the Applicant apprised the CoC members about the Publication of Form G under Regulation 36A of the CIRP Regulations, undertaken for inviting Expressions of Interest (hereinafter referred to as “EOI”) from Prospective Resolution Applicants (PRA) for submission of Resolution Plans for revival of the Corporate Debtor. Pursuant thereto, the Applicant RP issued Form G dated 17.03.2025 calling for EOIs from PRAs.

That in response to Form G dated 17.03.2025, the RP received 8 EOIs from the PRAs. It is further submitted that, since 5 EOIs were not received in accordance with the terms of the detailed EOI process document issued for submission of EOIs, the RP issued notice dated 07.04.2025 convening the 3rd CoC Meeting for discussion on the EOIs not received in compliance with the issued process document.

The 3rd meeting of the CoC was convened on 08.04.2025, wherein it was resolved that the EOIs not received as per the EOI process stated in the published EOI process document dated 17.03.2025, shall not be considered and will be rejected. The said resolution was passed with 89.85% of voting share, through e-voting, which concluded on 11.04.2025.

That the RP issued the provisional list of PRAs on 12.04.2025, comprising 3 eligible PRAs. It is further submitted that, as per the published Form G, the last date for submission of objections to the provisional list was 17.04.2025. Since no objections were received to the provisional list of PRAs and, accordingly, the final list was issued on 26.04.2025, containing the following names:

Mr. Gaurav Malik

Mr. Manan Narang

Krishna Builder (Sole Proprietorship of Mr. Parveen Mittal)

The 4th meeting of the CoC was convened on 25.04.2025, wherein the CoC approved the Request for Resolution Plan (“RFRP”) and the Evaluation Matrix. It is further submitted that the Information Memorandum, Evaluation Matrix and Request for Resolution Plan were issued to the prospective resolution applicants on 01.05.2025.

The 5th meeting of the CoC was convened on 04.06.2025 wherein on request of 2 PRAs, the CoC passed a resolution to extend the last date for submission of Resolution Plan till 17.06.2025. The RP submitted that till the last date for submission of Plan i.e., 17.06.2025, the RP had received only 1 Resolution Plan from Krishna Builder (Sole Proprietorship concern of Mr. Parveen Mittal), Prospective Resolution Applicant in the final list of PRA’s.

That the 6th Meeting of the CoC was called by the RP on 18.06.2025; however, at the request of the members of the CoC, the meeting was rescheduled and then convened on 27.06.2025, wherein the Resolution Plan submitted by the above-mentioned PRA was de-sealed and opened in the 6th CoC meeting dated 27.06.2025 in the presence of CoC members and a representative of the Resolution Applicant. That in the said meeting, the CoC, with 89.85% voting share, passed a resolution through e-voting concluded on 01.07.2025, authorising the RP to move an application under Section 12 of the Code before this Adjudicating Authority seeking extension of time by 90 days for completion of the CIRP since the period was lapsing. It is further submitted that this Adjudicating Authority, vide order dated 15.07.2025 passed in IA-3347/2025, allowed extension of the CIRP period by 60 days with effect from 16.07.2025.

That the 7th CoC Meeting was convened on 26.07.2025, wherein, after review and due-diligence, the RP put the Resolution Plan of M/s Krishna Builder before the CoC for discussion and deliberation. Pursuant to the discussions with the CoC in the said meeting, the PRA submitted its final revised Resolution Plan dated 25.08.2025 on 26.08.2025 and gave further clarifications vide letter 28.08.2025 and 30.08.2025.

That the 8th meeting of the CoC was held on 04.09.2025. That in the 8th CoC Meeting, in terms of Section 30(3) of the Code, upon due diligence and being satisfied that the Resolution Plan submitted by M/s Krishna Builder along with clarification letters dated 28.08.2025 and 30.08.2025 complied with Sections 29A, 30(1) and 30(2) of the Code and Regulations 37, 38 and 39(1) & (2) of the CIRP Regulations, the Applicant/ RP presented the Resolution Plan before the CoC for consideration and approval. The legal compliance report submitted by CS Pravesh Kumar of Pravesh Kumar & Associates was also placed before the CoC. Since only one compliant Resolution Plan was received, no tie-breaker formula under Regulation 39(3B) of the CIRP Regulations was required to be considered.

That the CoC resolved to first put the Resolution Plan for voting and, if required, the agenda items relating to liquidation under Section 33 of the Code, appointment and fee of Liquidator and matters under Regulation 39BA of the CIRP Regulations would be considered in the subsequent meeting.

That, in compliance with Regulations 39B(1) and 39C of the CIRP Regulations, the CoC deliberated upon the estimated liquidation cost and the manner of sale of the Corporate Debtor in the event of liquidation. Accordingly, with 89.85% voting share, the CoC resolved that the Liquidator shall first explore sale of the Corporate Debtor or its business as a going concern under Regulations 32(e) and 32(f) of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, and that the estimated liquidation cost of Rs. 19.00 lakhs (excluding Liquidator’s fee), the value of liquid assets being NIL, shall be contributed by the CoC members in proportion to their voting shares. The RP also placed before the CoC the summary and determination of certain avoidable transactions identified under Sections 43 and 66 of the Code on the basis of the transaction auditor’s report.

In the 8^th meeting of the CoC, the voting on the fate of the Resolution plan was conducted, which was held from 06.09.2025 to 08.09.2025. The CoC approved the Resolution Plan in terms of section 30(4) as submitted by M/s Krishna Builder, with 89.85 % voting share in favour, as against the requisite 66%, thereby declaring it as the Successful Resolution Applicant/SRA. It was resolved by the CoC in the 8th meeting that:

The results of the voting with list of Financial Creditor(s) of the Corporate Debtor being members of the CoC and distribution of voting share is as under:

The SRA, namely Krishna Builder, established in the year 1996, is stated to be an experienced construction contractor having more than 29 years of experience in the construction sector and has undertaken various projects on a PAN-India basis for Government departments and public sector undertakings including CPWD, NBCC (India) Ltd., IOCL, NDMC, CRPF, HSCC, IRCON, Delhi PWD and others. It is stated that as on 31.03.2024, the SRA had a net worth of Rs. 46.43 Crores. The SRA, under the proprietorship of Mr. Parveen Mittal, is stated to have executed projects relating to educational institutions, industrial and commercial buildings, residential and housing projects, hospitals, wastewater treatment facilities, RCC and composite steel structures, external development works and restoration of historical monuments, amongst other infrastructure works.

The SRA submitted that it does not have any relationship with the Corporate Debtor in terms of the provisions of the Act.

The SRA affirms that the it has full capability of execution and implementation of the present resolution plan proposed by the SRA.

Effective Date of the Plan: The SRA has stated that the Plan Effective Date shall be the date on which this Adjudicating Authority approves the Resolution Plan under Section 31 of the Code.

The SRA has, to the extent possible, taken into account the interests of all stakeholders of the Corporate Debtor in the following manner:

As per the information provided in the Resolution Plan -

The estimated CIRP cost as on the date of submission of the Resolution Plan is Rs. 28,50,000/-. The SRA has proposed payment of CIRP costs upto an amount of Rs. 28,50,000/-. It is further provided that in the event the actual CIRP cost exceeds the aforesaid amount, the excess amount shall be adjusted from the allocation earmarked towards payment to the Financial Creditors. The Resolution Plan further provides that the payment of CIRP costs shall be made in priority to all other debts of the Corporate Debtor in compliance with Section 30(2)(a) of the Code.

As per the Resolution Plan, the total admitted claim of Secured Financial Creditors is NIL and accordingly no amount has been proposed towards payment of secured financial creditors.

The Resolution Plan records that the total admitted claim of Unsecured Financial Creditors is Rs. 54,51,84,284/-. Against the aforesaid admitted claims, the SRA has proposed payment of Rs. 1,70,00,000/- towards satisfaction of the claims of unsecured financial creditors. The Resolution Plan further provides that upon approval of the Resolution Plan by this Adjudicating Authority, all remaining claims and liabilities of the Corporate Debtor towards the financial creditors, including principal amount, interest, penal interest, charges and other dues, shall stand extinguished and discharged with effect from the Effective Date and neither the Corporate Debtor nor the SRA shall remain liable in respect thereof.

It is further provided that the Financial Creditors shall withdraw all recovery and enforcement proceedings initiated against the Corporate Debtor before various courts, tribunals and authorities. However, the Resolution Plan clarifies that the personal guarantees furnished by the erstwhile promoters, third-party guarantees and other securities created in favour of the financial creditors shall continue to remain valid and enforceable in accordance with law and the financial creditors shall be entitled to pursue remedies against such guarantors and security providers. The Resolution Plan also stipulates that no right of subrogation shall accrue in favour of the erstwhile promoters/ shareholders upon invocation of such guarantees.

The total admitted claims of Workmen by the RP, as reflected in the updated Information Memorandum and Virtual Data, is NIL and accordingly, the SRA proposes NIL payment towards Workmen dues. However, pursuant to Section 30(2)(b) of the Code read with Regulation 38(1)(a) of the CIRP Regulations, any payment, if payable towards Workmen dues, being operational debt, shall rank in priority to other creditors under the Resolution Plan. Payment to Workmen, if any, shall be made in proportion to their claims admitted by the RP and recorded in the Information Memorandum, and such payment shall constitute full and final settlement of all Workmen dues including salary, bonus, leave encashment, terminal benefits, statutory contributions and all other statutory liabilities pertaining to the period prior to the Effective Date.

Upon approval of the Resolution Plan by this Adjudicating Authority, neither the Corporate Debtor nor the SRA shall, at any time in present or future, be directly or indirectly liable for any claims relating to Workmen dues for the period prior to the Effective Date and all such claims shall stand permanently extinguished without any further act, deed or requirement. In consideration of the Workmen Payment, all litigations and proceedings initiated by Workmen before any labour authority, department or court of law in relation to non-payment of dues, contributions or any other amounts for the period prior to the Effective Date shall stand withdrawn, dismissed and settled accordingly. All claims other than those forming part of the Workmen Payment, whether past, present or future, shall stand irrevocably waived, discharged and settled with effect from the Effective Date.

The total admitted claims towards Statutory Dues by the RP, as reflected in the Information Memorandum and Virtual Data, is Rs. 159,34,37,112.26 and the SRA proposes to pay a sum of Rs. 5,00,000/-towards the claims of Government Authorities falling under the category of Operational Creditors. Pursuant to Section 30(2)(b) of the Code read with Regulation 38(1)(a) of the CIRP Regulations, such dues, being operational debt, shall rank in priority to other creditors under the Plan and shall be paid within 180 days from the Effective Date. The aforesaid payment shall constitute full and final settlement of all statutory dues, taxes, duties, interest, penalties and other liabilities payable to any Government Authority for the period prior to the Effective Date.

Upon approval of the Resolution Plan, all claims, liabilities and proceedings of any Government Authority against the Corporate Debtor for the period prior to the Insolvency Commencement Date or Effective Date shall stand irrevocably waived, discharged, extinguished and settled, and neither the Corporate Debtor nor the SRA shall be liable for any further statutory dues, taxes, penalties or related liabilities. All pending or future proceedings in relation to such claims shall stand withdrawn, dismissed and disposed of with effect from the Effective Date.

The SRA submits that as per Information Memorandum and Virtual Data provided by RP and updated claims the total admitted claim of Employees Dues is NIL. SRA proposes to pay NIL. Pursuant to Section (30)(2)(b) and Regulation 38(1)(a), being operational dues, the payment to employees, if any, shall be in priority to other creditors under the plan.

All the dues, whether in past, present or future, pertaining to the employees of the Company, for the period prior to the Effective date, shall stand extinguished in full pursuant to the Approval Order of the Adjudicating Authority, without any further action or step on the part of any Person. In consideration of Employees Payment, all the litigations/ proceedings by Employees before any forum for non-payment of any dues/ contribution or any other moneys shall be withdrawn and shall stand dismissed accordingly and the Company shall no longer be required to make any payments in relation to such litigations/ proceedings. All claims apart from the claims forming part of the Employees Payments, whether past, present or future shall stand waived, discharged and settled completely with effect from the Effective date.

The SRA in the plan submits that, as per the Information Memorandum and Virtual Data provided by RP, the admitted claims of the Operational Creditors (other than Workmen & Employee Payment and Statutory Dues) are Rs.31,60,850 and the SRA proposes to pay Rs.1,00,000.00 towards the claim.

Further, in compliance of Section 30 (2)(b) and Regulation 38(1)(a) of the CIRP Regulations, the amount due to the Operational Creditors shall be given priority in payment over the Financial Creditors.

Therefore, all liability of the Company towards the Operational Creditors (other than the Workmen Payments and Statutory Payments) shall stand extinguished in full, pursuant to the Approval Order of this Adjudicating Authority on the Effective date, without any further action or step on the part of any Person and the Company and the SRA shall not be in any manner whatsoever at any point, present or future, be directly or indirectly responsible or liable for any claims by the Operational Creditors (other than for Workmen Payments and Statutory Payments) which relate to a period prior to the Effective date.

- Source of Funds: The SRA has proposed implementation of the Resolution Plan through infusion of funds from its internal accruals, short-term investments and own resources, along with the funds accruing from monetisation of the assets of the Corporate Debtor. As per the Chartered Accountant’s Certificate, the Successful SRA has a net worth of Rs. 4,643.47 Lakhs, thereby demonstrating its financial capability to implement the Resolution Plan. The SRA has submitted that the Corporate Debtor suffered financial distress and stalling of operations due to regulatory restrictions and other operational impediments. In order to address the causes of default and revive the operations of the Corporate Debtor, the SRA has proposed a comprehensive business plan under which necessary funds shall be infused for payment to creditors, reduction of outsiders’ liabilities, undertaking civil works, rebuilding and completion of the project, and creation of necessary infrastructure.

- Monitoring Committee: The SRA has proposed that a Monitoring Agency shall be constituted in consultation with the CoC for monitoring and supervision of implementation of the Resolution Plan in terms of Provisions of section 30(2)(d) of the Code read with Regulation 38(2)(c) of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The appointment shall be at the mutually agreed terms and with the approval of the CoC for the period with effect from the date of approval of the Plan by the Adjudicating Authority.

Within 10 business days of the Effective Date, a 3 Member Monitoring Committee shall be constituted. It shall comprise:  Insolvency Resolution Professional,  One representative of the CoC,  One representative of the Successful Resolution Applicant.

The Monitoring Committee shall be constituted for supervision and effective implementation of the Resolution Plan from the Effective Date till completion of the implementation period. The Monitoring Committee shall, inter alia, oversee implementation of the Resolution Plan, ensure transfer and custody of all records, documents and assets of the Corporate Debtor, provide updates to the Financial Creditors, and ensure that the assets of the Corporate Debtor remain free from encumbrances. The Committee shall also issue necessary certificates regarding implementation of the Resolution Plan and discharge of obligations of the SRA. The fee and expenses of the Monitoring Committee shall be borne by the SRA, and the Monitoring Committee shall stand automatically dissolved upon completion of payments contemplated under the Resolution Plan.

The SRA intends to implement its business plan as provided in the Resolution Plan for revival of the Corporate Debtor, with such revival to be facilitated by the grant of assistance, reliefs, and concessions sought therein. However, even if such reliefs or concessions are not granted, the Resolution Plan shall remain valid and shall not be withdrawn. It is expressly clarified that the effectiveness, implementation, and obligations of the SRA, including the quantum of payments or the terms of settlement proposed in respect of any creditor of the Corporate Debtor, are not conditional upon the grant or acceptance of any such conditions, assumptions, reliefs, concessions, or qualifications.

The Resolution Plan provides details of such reliefs and concessions and the same are set out under Chapter IV, Clause E, at Page 48 of the Resolution Plan.

As per the Plan, the SRA submits that it is not disqualified under Section 29A of the Code. It further states that neither the SRA nor any of its directors or key managerial Personnel or any of its /their relatives is/are disqualified under the said section. The SRA further submits the following:

The SRA has submitted an affidavit confirming eligibility under Section 29A of the Code to the RP at the time of submission of the Expression of Interest, along with the Resolution Plan prepared on the basis of the Information Memorandum.

The SRA submits that it has been informed by the RP that the estimated CIRP costs amounts to Rs. 28,50,000. The SRA proposes to make payment of the said amount for the CIRP Cost in priority within 180 days of approval by this Adjudicating Authority and in priority to payment of other debts of the Corporate Debtor. The SRA states that if the actual CIRP exceeds the said amount, it shall be paid from the amount allocated to the Financial Creditors.

The SRA in the Plan states that, the Resolution Plan envisages amount to be paid to such creditors in the event of Liquidation of the Corporate Debtor under Section 53 or the amount that would have been paid to such creditors, if the amount to be distributed under the resolution plan had been distributed in accordance with the order of priority in sub section (1) of Section 53, whichever is higher, and provides for payment the payment of debts of financial creditors, who do not vote in favour of resolution plan, in such manner as may be specified by the board, which shall not be less than the amount to be paid to such creditors in accordance with sub section (1) of section 53 in the event of liquidation of the Corporate Debtor.

After the Effective Date, The Corporate Debtor shall be managed by a Monitoring Committee according to the provisions of the Companies Act. The Directors on the reconstituted board shall be appointed within 30 days after the full and final payment proposed under the plan. During the implementation period, all the major decision shall be taken by Monitoring Committee.

As per the Resolution Plan, it provides for the constitution of a Monitoring Agency for the implementation and supervision of the resolution plan. The appointment shall be at the mutually agreed terms and with approval of COC Members for the period with effect from the Date of Approval of Resolution Plan by this Adjudicating Authority

The Resolution Plan does not contravene any of the provisions of the law for the time being in force.

The Board has notified the requirements under Regulation 38 of Insolvency and Bankruptcy Board of India (Insolvency resolution process for corporate persons) Regulations, 2016.

As per Regulation 37 of the CIRP Regulations, a Resolution Plan shall provide for the measures, as may be necessary, for insolvency resolution of the corporate debtor for maximization of value of its assets, including but not limited to the following:

The SRA submitted that the Resolution plan provides for the measures, as necessary, for Insolvency resolution of the Corporate Debtor for maximization of value of its assets, including but not limited to the items mentioned above as applicable.

Undertaking under Regulation 38 - It is stated that neither the SRA nor any of its related parties have failed to implement or contributed to the failure of implementation of any other resolution plan approved by the Adjudicating Authority at any time in the past. It is further stated that the SRA does not have any relationship with the Corporate Debtor.

- Regulation 38(1) – On approval of the resolution plan by Adjudicating Authority, payment towards CIRP costs will be paid within 180 days from the effective date. The Payment of CIRP Costs shall be made in priority to other debts of the Corporate Debtor in compliance with Section 30(2)(a) of the Code.

Regulation 38(1A) – The SRA confirms that it has considered interests of all stakeholders and has provided for payment/ repayment/ settlement of all stakeholders keeping in view the objective of the Company as a going concern, maximization of value and adhering to the requirements set out under the Code. Payment offered to various stakeholders is described in subsequent parts.

Regulation 38(1B) – The SRA hereby confirms that neither the SRA nor any of its related parties have ever failed or ever contributed to the failure of implementation of any other resolution plan approved by the Adjudicating Authority at any time in the past.

Regulation 38(2) – The Resolution Plan duly provides for:

the term of the plan and its implementation schedule;

the management and control of the business of the corporate debtor during its term; and

adequate means for supervising its implementation.

Regulation 38(3)(a) – The SRA submitted that it has identified the cause of default as financial troubles and irregularities of the Corporate Debtor. In order to properly address the cause of default of the Corporate Debtor, the SRA is providing the business plan where the SRA would attempt to revive the Corporate Debtor and run it in a prudent, effective and transparent manner.

Regulation 38(3)(b) – The SRA submitted that the Resolution Plan is compliant with all mandatory requirements of the Code and the CIRP Regulations, and adequately addresses the interests of all stakeholders, including payment mechanism, management and control of the Corporate Debtor, and implementation schedule. The SRA, being an established player in the industry, has formulated a projected business plan for revival of the Corporate Debtor after analysing its business operations and funding requirements. The SRA has further undertaken to meet any shortfall in funds from its own resources, thereby demonstrating the feasibility and viability of the Resolution Plan.

Regulation 38(3)(c) – The SRA has provided far the mechanism to monitor the progress and implementation of the plan.

Regulation 38(3)(d) – After the Effective Date, in order to give effect to this Plan, the Corporate Debtor (under new management) shall apply for the necessary approvals/licenses, if any, from concerned authorities or agencies immediately and forthwith. The Corporate Debtor (under new management) shall endeavour to complete the requisite formalities from its end for applying for the requisite approvals/licenses within 12 months from the Effective Date.

Regulation 38(3)(e) – SRA is fully aware about the present status of the Company and has the capability and funds for the implementation of this Plan. The requirement of additional staff will be ascertained/reviewed from time to time and the same will be hired and deployed as and when required.

Pursuant to regulation 38 (3) (e) of the CIRP regulations of the Code, SRA hereby submits that the profile and past financial statements of the SRA demonstrate strength, expertise, market hold and capability to turnaround any stressed assets. The management personal & the team members of the SRA are experienced with a convincing track record. All the above traits of SRA demonstrate its capability to implement the resolution plan.

The Resolution Plan sets out, that in accordance with Section 32A of the Code, The Corporate Debtor shall not be held liable for the offences committed prior to the commencement of CIRP and any such existing liability shall cease to exist entirely from the date of approval of the Resolution Plan by Adjudicating Authority effective immediately. The Corporate Debtor shall not be prosecuted for any offence committed prior to the commencement of CIRP from the date the resolution plan gets approved by the adjudicating authority under section 31. Provided that if Corporate Debtor is facing any such prosecution during the CIRP, it shall stand discharged from the date of the approval of the resolution plan with immediate effect. No action including attachment, seizure, retention or confiscation shall be taken against the movable or immovable property of Corporate Debtor in relation to any offence committed prior to the commencement of the CIRP where such property gets covered under the Resolution Plan approved by Adjudicating Authority. Furthermore, it is pertinent to note that SRA shall not be held responsible or liable for any past offences committed by the Debtor. Neither any of its employees, directors or any person associated with the SRA, who shall form the new management of the Corporate Debtor, shall be held liable directly or indirectly for the same in any manner.

The Resolution Plan provides that any amount recovered pursuant to avoidance applications under Sections 43, 45, 47, 49, 50 and 66 of the Code shall accrue for the benefit of the creditors forming part of the CoC and that the expenses relating to such proceedings shall be borne by the Financial Creditors. The Resolution Plan further provides that upon discharge of the Resolution Professional and Monitoring Professional, the beneficiaries of such recoveries shall pursue the avoidance proceedings.

However, during the course of proceedings, upon a query raised by this Adjudicating Authority regarding the prosecution of PUFE applications, Mr. Saurabh Kalia, Ld. Counsel appearing for the Applicant/Resolution Professional, submitted that the SRA shall pursue the PUFE applications and bear the legal expenses in relation thereto. It was further submitted that the amounts realised from such PUFE applications, after deduction of legal expenses, shall be deposited in the account of the CoC. Mr. Harsh Goyal, Ld. Counsel appearing through VC on behalf of the SRA, also confirmed the same.

We have heard the submissions of the Ld. Counsel for the Resolution Professional and perused the documents on record.

It is a matter of record that the CIRP for the Corporate Debtor, Broad Homes Private Limited, was initiated on a Section 7 Application filed by a Financial Creditor, Hallow Securities Private Limited, as per the order dated 16.01.2025, passed by this Adjudicating Authority.

This Adjudicating Authority has relied upon the decision of the Hon’ble Supreme Court in the matter of Vallal RCK vs. M/s. Siva Industries and Holdings Limited and Others^{11.Civil Appeal Nos. 1811-1812 of 2022}, whereby the Hon’ble Apex Court has answered the question as to whether the Adjudicating Authority (NCLT) or the Appellate Authority (NCLAT) can sit in an appeal over the commercial wisdom of the CoC or not. We rely upon the following paragraphs:

In light of the above-quoted judgements, it is clear that the “Commercial wisdom of CoC” is given paramount status. This Adjudicating Authority is not endowed with the powers of jurisdiction or authority to analyse or evaluate the commercial decision of the CoC. The Resolution Plan submitted by Krishna Builder (Sole Proprietorship concern of Mr. Parveen Mittal), the SRA, which was approved by the CoC in its 8th CoC meeting convened on 04.09.2025 (e-voting concluded on 08.09.2025) by 89.85% voting share in respect of the CIRP of the Corporate Debtor after considering its feasibility and viability, this Adjudicating Authority cannot interfere in the same.

Vide order dated 29.10.2025, the Resolution Professional was directed to file an affidavit with respect to the Government dues amounting to Rs. 159,34,37,112.26/- and dues to Operational Creditor amounting to Rs. 31,67,250.00/-, giving the break up and details of the said amount. The Resolution Professional filed an affidavit dated 15.11.2025 for the same. The relevant paras of the said affidavit are extracted below:

Further, during the course of proceedings, upon a query raised by this Adjudicating Authority regarding the prosecution of PUFE applications, Mr. Saurabh Kalia, Ld. Counsel appearing for the Applicant/Resolution Professional submitted that the SRA shall pursue the PUFE applications and bear the legal expenses in relation thereto. It was further submitted that the amounts realised from such PUFE applications, after deduction of legal expenses, shall be deposited in the account of the CoC. Mr. Harsh Goyal, Ld. Counsel appearing through VC on behalf of the SRA, also confirmed the same.

On perusal of the documents on record and submissions made by the Ld. Counsel appearing on behalf of the RP as well as the SRA, we are satisfied that the Resolution Plan is in accordance with the Code and also complies with the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

The Applicant/RP has filed a Compliance Certificate in the prescribed Form, i.e., Form-H as per the Resolution Plan in compliance with Regulation 39(4) of the CIRP Regulations. The Applicant/RP submits that the SRA is not disqualified under Section 29A of the Code to submit the Resolution Plan, as required by Regulation 39(1)(a) of the CIRP Regulations. A separate undertaking has also been submitted along with the EoI by the SRA, as mandated in terms of Regulation 39(1)(c) of the CIRP Regulations.

The present application has been filed with bonafide means, in the interest of justice and to advance the objectives of the Code.

In view of the above, we are of the considered opinion that the Interlocutory Application for approval of Resolution Plan i.e., I.A. (I.B.C) / 64 (ND) 2025, is hereby allowed and the Resolution Plan of Rs.2,05,50,000 is approved. The Resolution Plan shall form part of this Order. Regulatory fee of 0.25% to IBBI (if applicable) shall be paid separately. “Effective Date” means the date on which this Resolution Plan is approved by this Adjudicating Authority under Section 31 of the Code.

We direct that, in strict compliance with Regulation 38(2)(a) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, the SRA shall implement the approved Resolution Plan within a period of 180 days from the Effective Date, i.e., the date of its approval by the Adjudicating Authority, as expressly affirmed by the SRA in the mandatory contents as provided under Regulation 38 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 under the Resolution Plan.

The Resolution Plan is binding on the Corporate Debtor, its employees, members, creditors, including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan, so that the revival of the Corporate Debtor Company shall come into force with immediate effect.

The Moratorium imposed under Section 14 of the Code shall cease to have effect from the date of this order.

The reliefs, concessions and waivers sought by the SRA will be dealt with strictly as per law taking into consideration the decision of the Hon’ble Supreme Court in the matter of Embassy Property Development Private Limited v. State of Karnataka & Ors.^{22.Civil Appeal No. 9170 of 2019}, this Adjudicating Authority is not inclined to granting any relief prayed for except that is provided in the case itself and direct the SRA to file necessary application before the necessary forum/ authority in order to avail the necessary relief and concessions, in accordance with respective laws. The relevant part of the judgement is reproduced below:

As far as the question of granting time to comply with the statutory obligations/seeking sanctions from governmental authorities is concerned, the SRA is directed to do the same within one year as prescribed under Section 31(4) of the Code.

In case of non-compliance of this order or withdrawal of the Resolution Plan within the stipulated time, in addition to other consequences which follow under law, the CoC shall forfeit the EMD already paid by the SRA.

Further from the effective date and until the transfer date, a 3-member Monitoring Committee or Managing Committee is to be constituted. The Committee shall consist of one representative of the SRA, one representative of the CoC and the RP. The Monitoring Committee shall endeavour to complete the plan implementation within the time specified in the Resolution Plan from the date of this Order.

The RP shall submit the records collected during the commencement of the CIRP to the Insolvency and Bankruptcy Board of India (“IBBI”) for their record.

Liberty is hereby granted for moving appropriate application(s), if required in connection with the implementation of this Resolution Plan.

A copy of this Order shall be filed by the RP with the Registrar of Companies (RoC), NCT of Delhi & Haryana. The Memorandum of Association and Articles of Association shall accordingly be amended and filed with the RoC, for information and record. The SRA, for effective implementation of the Plan, shall obtain all necessary approvals, under any law for the time being in force, within such period as may be prescribed.

The RP shall stand discharged from his duties with effect from the date of this Order, save and except those duties that are enjoined upon him for implementation of the approved Resolution Plan. Further, the RP shall supervise the implementation of the Resolution Plan and file the status of its implementation before this Adjudicating Authority from time to time, preferably every quarter.

Further, in terms of the Judgment of the Hon’ble Supreme Court in the matter of Ghanshyam Mishra and Sons Private Limited Vs. Edelweiss Asset Reconstruction Company Limited ^{33.Civil Appeal No. 8129 of 2019}, wherein the Hon’ble Supreme Court held that on the date of the approval of the Resolution Plan by the Adjudicating Authority, all such claims which are not a part of the Plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to claims which are not a part of the Resolution Plan.

The RP is further directed to hand over all records, premises/ factories/documents available with it to the SRA to finalise the further line of action required for starting the operations of the Corporate Debtor. The SRA shall have access to all the records and premises through the RP to finalise the further course of action required for starting operations of the Corporate Debtor.

The Registry is hereby directed to send copies of the order forthwith to the IBBI, all the parties, and their Ld. Counsel for information and for taking necessary steps.

Certified copy of this order may be issued, if applied for, upon compliance of all requisite formalities.

No order as to costs.