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Civil Property & InheritanceSupreme Court of India

Satinder Singh Bhasin v. Col. Gautam Mullick & Ors.

Civil Appeal · 2026 INSC 104Decided 2 Feb 2026
C.A. No.-013628 - 2025 (heard with Civil Appeal Nos. 13779 and 13812 of 2025)
Justice Sanjay Kumar · Justice K. Vinod Chandran

Background

141 buyers ("allottees") of commercial office space in the "Grand Venezia Commercial Tower" project in Uttar Pradesh, a project launched in 2005 that was supposed to be handed over by 2013, jointly applied to the NCLT to start insolvency proceedings against the two linked developer companies, Bhasin Infotech and Infrastructure Pvt. Ltd. and Grand Venezia Commercial Towers Pvt. Ltd., after years of non-delivery of possession and non-payment of promised "assured returns." The NCLT admitted the case and the NCLAT dismissed the developers' appeals; the erstwhile directors then appealed to the Supreme Court, arguing the required 100-allottee threshold under Section 7 of the IBC was not genuinely met, that a single petition could not be filed against two separate companies, and that construction was actually complete.

Decision Breakdown

The Supreme Court dismissed all three connected appeals. It held the 100-allottee threshold was satisfied because it must be assessed as of the date the petition was filed (per Manish Kumar v. Union of India), not later after settlements; changes made to the list of allottees while the petition was returned for curing defects (before formal registration) were procedurally permissible and not an abuse of process. On the "two companies, one petition" objection, the Court found the two developers were intrinsically linked (common directors, interchangeable correspondence with allottees, and a marketing agreement) making joint insolvency proceedings appropriate to maximize recovery for allottees. Finally, on the claim that construction was complete, the Court relied on a court-appointed Observer's on-site report from May 2025 showing several floors were bare-shell structures lacking basic amenities, and held the developers' possession letters were legally ineffective because the land-lease terms required tripartite sublease deeds (never executed) before actual possession could lawfully be delivered.

Lesson Learnt

In real-estate insolvency cases, courts will look past paper "possession letters" and completion claims to the actual on-ground condition of a project, and closely linked group companies developing a single project cannot escape joint insolvency proceedings by claiming to be legally separate entities when their conduct shows otherwise.

Satinder Singh Bhasin v. Col. Gautam Mullick & Ors. – Legal Case Shots | LegalAware