Case Details

Case Name: M/s. Apartment Buyers Consumer Association vs. M/s. Dreamz Infra India Limited

Court/Authority: National Company Law Tribunal, Bengaluru Bench

Case Number: I.A. No. 543/2024 in C.P. (IB) No. 113/BB/2022

Date of Order: 21.05.2026

Period of Dispute: CIRP admission date: 24.08.2023; Intervention application filed subsequently

Parties Involved

Petitioners/Financial Creditor: Apartment Buyer's Consumer Association

Respondent/Corporate Debtor: Dreamz Infra India Limited (Samhita Project)

Applicant/Intervenor: M/s Dreamz GK Investors Welfare Association (represented by President Jawahar Singh)

Respondent/Resolution Professional: Ms. Ramanathan Bhuvaneshwari

Tribunal Members: Shri Sunil Kumar Aggarwal (Member Judicial), Shri Radhakrishna Sreepada (Member Technical)

Issues / Allegations / Violations

The Intervener Association alleged that:

  • Properties of Dreamz Samhita Project were attached vide Karnataka Government Notification No. RD, 17 GRC 2017(P-2) dated 20.06.2019 under KPID Act, 2004
  • Misc. No. 2/2020 was initiated and seized before KPID Special Court prior to CIRP order for Samhita Project
  • Hon'ble High Court of Karnataka vide order dated 07.11.2022 in WA No.1343/2021 had stayed proceedings, protecting assets of Corporate Debtor except Sumadhur Project
  • Admission of CIRP on 24.08.2023 was contrary to law as property belonged to Karnataka government due to prior attachment
  • Funds collected from investors across projects (including Intervener members) were diverted and commingled for Samhita Project development

Findings & Observations

The Tribunal made several key findings:

  • The interim stay granted by Division Bench of Karnataka High Court on 07.11.2022 in WA No.1343/2021 was limited to operation of order passed in WP No.13477/2020
  • No specific stay was granted against CIRP proceedings concerning Samhita Project
  • Hon'ble High Court in WP No.18811/2023 clarified that homebuyers have liberty to choose their forum under different statutes including IBC
  • Project-wise insolvency resolution is well-accepted principle under IBC for real estate cases involving multiple projects
  • The Applicant Association represents investors/depositors who claim to have invested in various other projects, but no project-specific evidence was produced showing their funds were utilized for Samhita Project
  • The judgments relied upon by Applicant (National Spot Exchange Ltd., Thiripura Chits, etc.) were rendered in different factual and statutory contexts and are not applicable

Penalties / Settlements / Directions

  • IA No. 543/2024 is dismissed in its entirety
  • No stay granted on CIRP proceedings of Dreamz Samhita Project
  • No impleadment of Intervener Association allowed
  • No costs imposed

Corrective Actions & Future Obligations

  • CIRP of Dreamz Samhita Project to continue without interruption
  • Resolution Professional to proceed with resolution process as per approved timeline
  • Resolution Plan by Consortium of M/s Noida Holdings Private Limited & Bharat Hitech Builders Private Limited (approved with 83.05% CoC vote share) remains pending approval before NCLT

Final Ruling & Enforcement

The Tribunal dismissed IA No. 543/2024 with the following reasoning:

  • Applicant failed to establish that interim stay in WA No.1343/2021 operates as prohibition against CIRP proceedings
  • No evidence linking Intervener's funds to Samhita Project development
  • Application appears to be attempt to obstruct and delay resolution process
  • Impleadment would derail process and prejudice interested homebuyers
  • No merits found in the application

The CIRP process for Dreamz Samhita Project continues, and the approved Resolution Plan awaits final NCLT approval.