AA Correctly Dismissed Appellant’s Plea to Exclude Plot from Liquidation Estate as it Remained in CD’s Ownership | NCLAT

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  • Last Updated on 29 November, 2023

Liquidation Estate

Case Details: K. Jayant Prabhu v. Pankaj Srivastava - [2023] 156 taxmann.com 351 (NCLAT-Chennai)

Judiciary and Counsel Details

    • M. Venugopal, Judicial Member & Shreesha Merla, Technical Member
    • Sriranga Subbanna, Sr. Adv. & Ms Sumana Naganand, Adv. for the Appellant.
    • Abhishek AnandMs Shriraja S., Advs. for the Respondent.

Facts of the Case

In the instant case, the Appellant/homebuyer entered into a sale agreement with corporate debtor for purchase of a plot in schedule ‘A’ property and booked a villa to be constructed on said plot developed by corporate debtor (referred as schedule B property).

Since corporate debtor was delaying completion of pending work in schedule A property, it permitted appellant to take possession of villa and start interior work. Corporate debtor went under liquidation and a liquidator was appointed.

Subsequently, the Appellant filed its claim requesting liquidator to register schedule B property in favour of appellant and to execute said sale deed. Appellant also filed a claim of an amount which was incurred by appellant on unfinished work of schedule A property.

Further, the Claim of appellant for amount incurred was admitted by liquidator but appellant was directed to handover control and custody of schedule B property to liquidator.

Also, the Appellant filed an application before NCLT praying for direction to liquidator to exclude schedule ‘B’ property from liquidation estate of corporate debtor, however, NCLT dismissed the same vide impugned order.

Further, it was noted that neither security interest was created in favour of appellant nor a registered sale deed was executed between appellant and corporate debtor, and only being in possession of an immovable property would not have conferred any ownership right upon a person.


Since in instant case, ownership of said property rested with corporate debtor, the NCLAT held that impugned order was free from legal flaws.

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