Authority: National Company Law Tribunal Chandigarh Bench

Order Date: 12.06.2026

Case Overview

The National Company Law Tribunal (NCLT) Chandigarh Bench heard an application filed by Resolution Professional Parminder Singh Bhullar under Sections 30(6) of the Insolvency and Bankruptcy Code, 2016, seeking approval of a resolution plan for Sarv Awas Housing Bhiwadi Private Limited. The corporate debtor is a real estate company that was admitted into Corporate Insolvency Resolution Process (CIRP) on 15.09.2022 following a Section 9 application filed by operational creditor Manoj Kumar (Proprietor M/s Volunteer Associates).

The company was engaged in the 'Aravali Garden Project' in Bhiwadi, Rajasthan, comprising approximately 900 flats across 5 towers. At the commencement of CIRP, only 1% of construction work was completed. The Committee of Creditors (CoC) comprised 237 financial creditors (allottees) holding 100% voting share, with total admitted claims of Rs. 25.50 crore against total claims of Rs. 27.31 crore.

After initial failed attempts to find a resolution applicant, the CoC initially resolved to liquidate the company. However, interest was subsequently expressed by Rawal Ram, leading to a third publication of Form G. Ultimately, only one resolution plan was received from the Consortium of Rawal & Chadha (later modified to Consortium of Khileri & Chadha), which was approved by 100% voting share in the 13th CoC meeting held on 24.11.2024.

The resolution process saw multiple extensions beyond the initial 180-day period, with the final extended period ending on 22.12.2024. The tribunal directed fresh valuation of assets after finding initial valuations incomplete, which resulted in revised average fair market value of Rs. 21.02 crore and liquidation value of Rs. 15.27 crore.

Final Outcome

The NCLT approved the resolution plan submitted by the Successful Resolution Applicant (Consortium of Khileri & Chadha) with a total financial outlay of Rs. 28.37 crore. Key features of the approved plan include:

  • Payment of CIRP costs of Rs. 2.01 crore in priority within 30 days from effective date
  • Treatment of 237 allottees (unsecured financial creditors) with claims of Rs. 22.72 crore: option to receive completed flats with 30% escalation cost on basic sale price or refund of principal amount only
  • Payment of 50% of admitted claims (Rs. 57.65 lakh) to 54 token-holders who filed claims
  • Extension of similar treatment (50% of principal amount) to 248 token-holders who did not file claims during CIRP, involving additional Rs. 2.43 crore
  • Payment of 5% (Rs. 20.98 lakh) against Income Tax Department's claim of Rs. 4.19 crore filed belatedly
  • Payment of 25% (Rs. 40.64 lakh) to operational creditors (other than workmen and government dues) against admitted claims of Rs. 1.62 crore
  • Project completion timeline of 42 months from effective date, including 9 months for statutory approvals
  • Constitution of a monitoring committee for implementation supervision

The tribunal dismissed three intervening applications (IA No.1808/2025, IA No.1991/2025, and IA No.16/2026) that alleged fraudulent initiation of CIRP, finding no substance in the claims and noting that the admission order dated 15.09.2022 had attained finality.

The moratorium order dated 15.09.2022 ceased to have effect from the date of this order. All unpaid liabilities and claims not included in the resolution plan stand extinguished in accordance with the Supreme Court's judgment in Ghanshyam Mishra case.

Topics: Insolvency Resolution, Real Estate, Homebuyers