ANJALI RATHI AND OTHERS versus TODAY HOMES & INFRASTRUCTURE PVT. LTD. AND OTHERS

ANJALI RATHI AND OTHERS versus TODAY HOMES & INFRASTRUCTURE PVT. LTD. AND OTHERS

Because the Resolution Plan approved by the CoC was still pending approval under Section 31(1) of the IBC, the Court declined to direct attachment of the promoters' personal properties at this stage; it directed the Adjudicating Authority (NCLT) to dispose of the approval application expeditiously (preferably within six weeks from receipt of certified copy), permitted petitioners to submit objections before the Adjudicating Authority, and clarified that the moratorium under Section 14 bars proceedings against the corporate debtor but does not prevent initiation of proceedings against promoters in their personal capacity.

Parties
Petitioners: Anjali Rathi and others; First Respondent / Corporate Debtor: Today Homes & Infrastructure Pvt. Ltd. and others
Jurisdiction
India
Judgment Date
08 September 2021
Procedural Posture
Special Leave Petition (civil) No. 12150 of 2019 and Related Appeals / Disposed by Supreme Court Judgment
Outcome
Special Leave Petitions and related civil appeals disposed of by the Supreme Court
Legal Topics
Moratorium Under Section 14 IBC, Approval of Resolution Plan Under Section 31(1) IBC, Liability of Promoters and Directors, Execution of NCDRC Orders
Insolvency and Bankruptcy Consumer Protection Civil Procedure Moratorium Under Section 14 IBC Approval of Resolution Plan Under Section 31(1) IBC Liability of Promoters and Directors Execution of NCDRC Orders

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Parties

Anjali Rathi and others

Petitioners

Today Homes & Infrastructure Pvt. Ltd. and others

First Respondent / Corporate Debtor

Procedural Posture

Special Leave Petition (civil) No. 12150 of 2019 and Related Appeals / Disposed by Supreme Court Judgment

Legal Issues

  1. 1 Whether the Supreme Court can direct attachment of promoters' personal properties prior to approval of a Resolution Plan under Section 31(1) of the IBC
  2. 2 Whether the moratorium under Section 14 of the IBC prevents proceedings against promoters/directors as distinct from the corporate debtor
  3. 3 Procedure to be followed where a Resolution Plan approved by the CoC is pending approval before the Adjudicating Authority

Ratio Decidendi

Because the Resolution Plan approved by the CoC was still pending approval under Section 31(1) of the IBC, the Court declined to direct attachment of the promoters' personal properties at this stage; it directed the Adjudicating Authority (NCLT) to dispose of the approval application expeditiously (preferably within six weeks from receipt of certified copy), permitted petitioners to submit objections before the Adjudicating Authority, and clarified that the moratorium under Section 14 bars proceedings against the corporate debtor but does not prevent initiation of proceedings against promoters in their personal capacity.

Court Disposition

Special Leave Petitions and related civil appeals disposed of by the Supreme Court

Orders

  • NCLT/Adjudicating Authority directed to dispose of the application for approval of the Resolution Plan expeditiously and preferably within six weeks from the date of receipt of a certified copy of this order
  • If petitioners have objections to the Resolution Plan they shall submit them before the Adjudicating Authority