Case Details
Case Name: Phoenix ARC Pvt. Ltd. vs Halwasiya Developments Pvt. Ltd. & Ors.
Parties: Appellant - Phoenix ARC Pvt. Ltd. (acting as Trustee of Phoenix Trust-Fy25-1); Respondents - Halwasiya Developments Pvt. Ltd. & Ors.; Other Appellants - Ashok Kumar Gupta (RP of Andes Town Planners Pvt. Ltd.), Dr. Shravan Kumar Vishnoi (Authorised Representative of Financial Creditors - Homebuyers), CIS Infrastructure LLP & Anr.
Court/Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Case Numbers: Company Appeal (AT) (Insolvency) No.164-166 of 2025, No.266-268 of 2025, No.295 of 2025, No.365 of 2025
Date of Judgment: 25th May, 2026
Period of Dispute: Development Agreement dated 19.01.2018 to CIRP initiation on 02.03.2023
Parties Involved
Corporate Debtor: Andes Town Planners Pvt. Ltd. (owned land measuring 73,018.74 sq. mtrs at Vibhuti Khand, Gomti Nagar, Lucknow)
Financial Creditors: Piramal Capital and Housing Finance Limited (original lender), Phoenix ARC Pvt. Ltd. (current creditor with admitted claim of Rs. 2,25,04,42,092/-)
Developer: Halwasiya Developments Pvt. Ltd. (entered into Development Management Agreement dated 19.01.2018)
Resolution Professional: Ashok Kumar Gupta
Homebuyers: Represented by Dr. Shravan Kumar Vishnoi
Allottees: CIS Infrastructure LLP (16 residential units), Mrs. Nivedita Singhal and 4 other buyers
Legal Representatives: Multiple senior advocates including Mr. Amit Chadha, Mr. Gopal Jain, Mr. Vivek Kohli
Issues / Allegations / Violations
- Resolution Professional filed IA No.3739 of 2023 seeking direction to Halwasiya to stop construction and handover possession of project Ananta Residencies
- Halwasiya claimed development rights based on unregistered Development Management Agreement dated 19.01.2018, Power of Attorney dated 19.01.2018, and Consortium Agreement dated 05.09.2020
- Financial creditor alleged that Development Agreement was executed without obtaining NOC from lender despite mortgage deed dated 01.10.2014 securing loan facility of Rs.90 Crores
- Mortgage covered entire land of 73,018.74 sq. mtrs along with unsold units and receivables of project including Ananta Residencies
- Conversion of project from residential-cum-commercial to commercial without consent of all allottees (CIS Infrastructure LLP objected)
- NCLT originally rejected RP's application while allowing Halwasiya's application (IA No.5252 of 2023)
Findings & Observations
- Development Agreement dated 19.01.2018 acknowledged mortgage/charge of DHFL in Clause 7.1
- Clause 4.1.4 of Development Agreement required obtaining NOC from DHFL, which was never obtained
- Mortgage deed dated 01.10.2014 contained restriction on creating third-party rights during continuance of security
- Unregistered Development Agreement and Power of Attorney cannot create rights in immovable property under Registration Act
- Halwasiya conceded it claims no ownership rights, only rights to unsold units as per Development Agreement
- Project Ananta Residency was 96.50% complete as per Architect's and Engineer's Certificates
- Completion of construction is in interest of all stakeholders including homebuyers
- RP is entitled to supervise construction and seek all information and records
Penalties / Settlements / Directions
- NCLAT sets aside NCLT order dated 17.12.2024 rejecting IA No.3739 of 2023
- IA No.3739 of 2023 allowed: Halwasiya directed to provide all details, documents and information of project to RP for carrying out CIRP
- Halwasiya permitted to complete construction but must give access to RP
- Finding that project became asset of Halwasiya set aside - project remains owned by corporate debtor
- Lenders' charge from mortgage deed dated 01.10.2014 continues on project Ananta Residency
- Order in IA No.5252 of 2023 affirmed subject to RP's right to obtain project information
- Order in IA No.6314 of 2023 (filed by homebuyers) upheld
Corrective Actions & Future Obligations
- Halwasiya must provide complete access to RP for project information and documentation
- RP to supervise construction while allowing Halwasiya to complete project
- All parties to comply with CIRP process requirements under IBC
- Construction to continue in interest of homebuyers and all stakeholders
Final Ruling & Enforcement
- All appeals partly allowed
- NCLAT order dated 25th May, 2026 is immediately enforceable
- Parties to bear their own costs
- RP to continue CIRP process with access to all project information and documents from Halwasiya