Authority: National Company Law Appellate Tribunal, Chennai (Appellate Jurisdiction)
Order Date: 24 September 2026
Case Overview
The appeal involves HDFC Bank Ltd (formerly HDFC Ltd) as appellant financial creditor challenging the extinguishment of its security property in the resolution plan for corporate debtor Sabari Realtors Pvt Ltd. The bank contends that the secured property does not belong to the corporate debtor but rather to land owners with whom Sabari Realtors had entered into a development agreement. According to the appellant, Sabari Realtors acted as a developer while the security property (land) actually belongs to the land owners.
The immediate concern prompting this appeal is that the Successful Resolution Applicant (SRA) has approached the Adjudicating Authority seeking release of the charge over the property and return of the original title documents that were mortgaged by the land owners. The SRA's counsel countered that the issue is more complex than presented by the appellant and highlighted that numerous home buyers are awaiting possession of their properties. The counsel also indicated being under extended timelines before RERA for compliance with its directions.
Final Outcome
The NCLAT has scheduled a final hearing for 12:00 pm on 6 October 2026, allowing one hour for each side to complete their arguments. As an interim measure, the tribunal has directed the Successful Resolution Applicant not to precipitate matters and to maintain the status quo regarding assets until the appeals are heard and disposed, ensuring conditions conducive to a proper hearing.
Topics: Insolvency Proceedings, Security Interest Rights