NCLAT Delhi Refuses Interim Exclusion of 8.137 Acres from CIRP: Santosh Kumar Vs IDBI Trusteeship Services P. Ltd. & Anr.
Background and Context
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, recently took up two competing interlocutory applications arising during the pendency of an appeal against the admission of ATS Infrabuild Pvt. Ltd. into the Corporate Insolvency Resolution Process (CIRP). The CIRP was admitted by the Adjudicating Authority on 04.03.2025 on an application filed by IDBI Trusteeship Services Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).
The two applications — IA No. 3274 of 2026 and IA No. 5865 of 2026 — raised diametrically opposed prayers, and since they involved substantially identical factual and legal issues, the Tribunal disposed of both through a single common order.
The Competing Applications
IA No. 3274 of 2026 — Landowner's Application
This application was filed by Rajinder Singh, who claimed ownership of approximately 8.137 acres of land forming part of the ATS Casa Espana Phase II Project, Sector 121, SAS Nagar, Mohali, Punjab. His prayers included:
- Permission to intervene in the ongoing appellate proceedings
- Exclusion of the 8.137 acres from the asset pool of the corporate debtor
- Exclusion of the ATS Casa Espana Phase II project itself from the CIRP
- Setting aside of the NCLT's admission order
- Remand to the Adjudicating Authority for fresh consideration
- Restoration of original title in his favour
IA No. 5865 of 2026 — IRP's Application
The Interim Resolution Professional (IRP) of ATS Infrabuild Pvt. Ltd. filed this application seeking:
- A direction to restrain Rajinder Singh, his agents, contractors, and employees from carrying out any construction, excavation, piling, or development on the ATS Casa Espana Project, Phase II site
- Vacation of the subject property by the landowner and removal of all material and machinery
- Restraint against alienation, encumbrance, or creation of third-party rights in the subject property
- Police assistance for implementation of the Tribunal's orders
Factual Matrix
The Land Pooling and Development Structure
The project's origins trace back to a collaboration structure involving two parcels of land. Shiwalik Site Planners Ltd. (Shiwalik) owned approximately 17 acres in Sector 121, Mohali, and had entered into a collaboration agreement with ATS Infrabuild Pvt. Ltd. (the corporate debtor) for development of the ATS Casa Espana project on that land.
A deed of full and final settlement dated 24.07.2014 was executed between Sardara Singh (father of Rajinder Singh), Shiwalik, and Evergreen Infrastructure Pvt. Ltd. as confirming party. Under this arrangement, approximately 8 acres owned by Sardara Singh was pooled into the project, enabling Shiwalik to obtain the necessary license over the entire ~25-acre parcel.
An addendum to this settlement was subsequently executed on 21.11.2017 among Shiwalik, Rajinder Singh, and Sardara Singh, recording that Rajinder Singh had stepped into his father Sardara Singh's shoes as the landowner of the 8-acre parcel and was to receive 17 apartments of 3,300 sq. ft. each in Tower 1 of Casa Espana.
The Joint Development Agreement and Power of Attorney
On 21.11.2017, a Joint Development Agreement (JDA) was executed among Rajinder Singh (Owner/First Party), ATS Infrabuild Pvt. Ltd. (Developer/Second Party/Corporate Debtor), and Shiwalik (Confirming Party/Licensee).
Key clauses of the JDA included:
- Clause 2.1.1: The owner irrevocably, absolutely, and unconditionally granted the entire development rights over the project land to the developer
- Clause 3.4.12: The developer was entitled to create equitable mortgages, charges, or encumbrances on the project land to raise construction finance, without making the landowner personally liable
- Clause 10.1.2: The owner acknowledged having handed over peaceful and vacant possession of the project land to the developer
- Clause 10.1.7: After execution of the POA, the owner was not to do any act that could cancel or revoke the POA or prejudice the developer's authority
- Clause 12.1: In the event of breach by any party, the other party was entitled to seek specific performance — neither party was entitled to terminate the agreement
- Clause 12.2: The parties recognised and acknowledged that the developer would invest substantial sums and the owner "shall not revoke the Development Rights so granted to the Developer hereunder nor shall it be entitled to terminate this Agreement for any reason whatsoever"
- Clause 19: Construction and completion were to be achieved within 60 months from the date of sanction of building plans and obtaining applicable approvals, with a further grace period of 6 months
Simultaneously, an irrevocable Power of Attorney (POA) was executed by Rajinder Singh on 21.11.2017 in favour of ATS Infrabuild Pvt. Ltd., authorising the developer to, inter alia, develop the land, create mortgages, borrow money from financial institutions by offering the land as security, and deal with the property in any manner deemed fit to give effect to the JDA.