The National Company Law Appellate Tribunal ("NCLAT"), Principal Bench, comprising of Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), while adjudicating an appeal filed in Smt. Sabita A. Biswa v Shri Vinodkumar Pukhraj Ambavat, has declined to entertain the claim of a creditor based on an unregistered and unstamped sale deed which was only executed before the Notary and has held that such document cannot be basis for any claim with respect to the purchase of immovable property.
Asrec India Limited had filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("IBC") before the NCLT Cuttack Bench ("Adjudicating Authority"), seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against R.K Jain Construction India Pvt. Ltd. ("Corporate Debtor"). The Adjudicating Authority had initiated CIRP and Shri Vinodkumar Pukhraj Ambavat was appointed as the Resolution Professional.
Smt. Sabita A. Biswa ("Appellant") being a creditor of the Corporate Debtor, had filed her claim in Form-C along with the photocopy of unregistered sale deed engrossed on Rs. 100/- stamp paper, allegedly executed before the Notary on 13.01.2015. Subsequently, Appellant had filed an application before the Adjudicating Authority seeking direction to Resolution Professional to accept the claim. The Adjudicating Authority vide an order dated 07.07.2022 had rejected the Application while observing that alleged sale deed was neither registered nor stamped and cannot be looked for any purpose.
The Appellant filed an appeal before the NCLAT against the order dated 07.07.2022.
Decision Of NCLAT
The Bench observed that the Adjudicating Authority had rightly taken the view that such kind of sale deed which is neither registered nor stamped and was executed before Notary cannot be basis for any claim with regard to the purchase of immovable property, as claimed by the Appellant. Accordingly, the appeal was dismissed.
Case Title: Smt. Sabita A. Biswa v Shri Vinodkumar Pukhraj Ambavat
Case No.: Company Appeal (AT) (Insolvency) No. 1056 of 2022
Counsel For Appellant: Mr. Tasmeet Singh, Mr. Pushpendra S. Bhadoriya, Mr. Guneet Sidhu, Advocates Counsel For Respondent: Ms. Pratiksha Sharma, Mr. Ankit Acharya, Ms. Mueed Shah, Advocates