Authority: National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi

Order Date: 20 August 2026

Case Overview

This Interim Application (I.A. No. 5865 of 2026) was filed by the Interim Resolution Professional (IRP) in the matter of Comp. App. (AT) (Ins) No. 518 of 2025. The appellant is Santosh Kumar, and the respondents are IDBI Trusteeship Services P. Ltd. (Respondent No. 1) and Rajinder Singh (Respondent No. 2). The IRP sought directions to prevent Respondent No. 1 from carrying out any construction, development, excavation, piling, or any other activity on the project site of "ATS Casa Espana Project," Phase II, located in Sector 121, SAS Nagar, Mohali, Punjab. The IRP argued that the Corporate Debtor (CD) holds development rights for this project, which constitute 'assets' of the CD that must be preserved during insolvency proceedings, even though ownership lies with Respondent No. 1.

Respondent No. 1 contested these claims, stating that Phase-II of the project is entirely separate from Phase-I, which is connected to the CD. They further submitted that any developmental rights claimed by the CD had been formally revoked on 25 October 2023. Respondent No. 1 had previously filed two other applications (IA No. 3274 of 2026 and 3275 of 2026) seeking to segregate this specific project from the ongoing insolvency process of the CD.

Final Outcome

The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Naresh Salecha (Member-Technical), issued an interim order to preserve the property until the next hearing. The tribunal directed that a status quo be maintained by all parties concerning the ATS Casa Espana Project, Phase II, until the next date of listing. Procedurally, Respondent No. 1 was granted 4 days to file a reply to the IRP's application, with the IRP given 3 subsequent days to file a response. Respondent No. 2 was also granted the same opportunity to file objections. The IRP was permitted to file a response to Respondent No. 1's earlier applications (IA No. 3274 & 3275 of 2026) within 4 days. Consequently, the IRP agreed to withdraw a similar application (IA No. 2855 of 2026) filed before the Adjudicating Authority. The matter is now listed for further hearing on 2 September 2026, along with the connected applications.

Topics: Insolvency Proceedings, Real Estate Dispute, Asset Preservation