Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 20 August 2026
Case Overview
The Interim Resolution Professional (IRP) filed an application (IA No. 5865 of 2026) seeking to restrain IDBI Trusteeship Services Ltd. (Respondent No. 1) from carrying out any construction, development, excavation, piling, or other activities at the "ATS Casa Espana Project," Phase II, located in Sector 121, SAS Nagar, Mohali, Punjab. The IRP argued that the Corporate Debtor holds development rights for this project, which constitute assets that must be preserved during the insolvency process, citing settled law on this matter.
Respondent No. 1 (IDBI Trusteeship) countered that Phase II of the project has no connection with Phase I, which is linked to the Corporate Debtor. They further claimed that any developmental rights allegedly held by the Corporate Debtor were actually revoked on 25 October 2023. The tribunal noted that two other applications (IA No. 3274 of 2026 and 3275 of 2026) had been previously filed by Respondent No. 1 seeking to segregate this project from the insolvency process.
Final Outcome
The NCLAT bench directed that status quo be maintained by all parties regarding the ATS Casa Espana Project, Phase II until the next hearing date of 2 September 2026. The tribunal granted Respondent No. 1 four days to file a reply to the IRP's application, with the IRP having three days thereafter to file a response if desired. Respondent No. 2 (Rajinder Singh) was also granted the opportunity to file objections in the same manner. The IRP agreed to withdraw a similar application (IA No. 2855 of 2026) previously filed before the Adjudicating Authority.
Topics: Insolvency Proceedings, Real Estate Dispute, Development Rights