Elegna Co-Op Housing & Commercial Society Ltd v. Edelweiss ARC Ltd, 2026 INSC 58. - S.7 IBC - Homebuyer Society Locus
You can read our notes on this judgment in our Supreme Court Daily Digests. If you are our subscriber, you should get it in our Whatsapp CaseCiter Community at about 9pm on every working day. If you are not our subscriber yet, you can register by clicking here:
Insolvency and Bankruptcy Code 2016 - Section 7- The right to initiate or participate in insolvency proceedings is statutory, not equitable - A society or Resident Welfare Association, not being a creditor in its own right and not recognised as an authorised representative of allottees under the IBC, has no locus standi to intervene in proceedings arising out a Section 7 petition (Para 13.22)- Proceedings under Section 7 are essentially bipartite at the admission stage, involving only the financial creditor and the corporate debtor. Unrelated third parties including other creditors, have no independent right of audience at this stage.(Para 13.11) At the pre-admission stage, proceedings under Section 7 remain in personam, and neither the Adjudicating Authority nor the Appellate Authority is required to hear other creditors, much less unrelated third parties. When proceedings are in personam, no right of audience inheres in persons who are strangers to the debt and default forming the basis of the application. (Para 13.5)
Insolvency and Bankruptcy Code 2016 - Section 30- If the CoC approves a resolution plan in derogation of the objectives, scheme, and ethos of the Code, the NCLT is not rendered powerless at the stage of approval (Para 12.17)- While the commercial wisdom of the Committee of Creditors is paramount and is not ordinarily amenable to judicial review, the width of powers vested in the CoC carries with it a corresponding duty of responsibility. Any extraordinary or non-routine decision taken by the CoC must be supported by cogent reasons duly recorded in writing. (Para 15.1)
Case Info
Case Name and Neutral Citation
- Elegna Co-Op. Housing and Commercial Society Ltd. vs Edelweiss Asset Reconstruction Company Limited & Anr.; with Takshashila Heights India Private Ltd. vs Edelweiss ARC Ltd & Anr.
- Neutral citation: 2026 INSC 58
Coram
- J.B. Pardiwala, J.
- R. Mahadevan, J.
Judgment Date
- January 15, 2026
Caselaws and Citations Referenced
- Pioneer Urban Land and Infrastructure Ltd v. Union of India, (2019) 8 SCC 416
- Chitra Sharma v. Union of India, (2018) 18 SCC 575
- Innoventive Industries Ltd v. ICICI Bank, (2018) 1 SCC 407
- Swiss Ribbons (P) Ltd v. Union of India, (2019) 4 SCC 17
- Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd., (2018) 1 SCC 353
- GLAS Trust Co. LLC v. Byju Raveendran, (2024) INSC 811; (2025) 3 SCC 625
- Vidarbha Industries Power Ltd v. Axis Bank Ltd, (2022) 8 SCC 352
- M. Suresh Kumar Reddy v. Canara Bank, 2023 SCC OnLine SC 608
- Indus Biotech Pvt. Ltd. v. Kotak India Venture (Offshore) Fund, (2021) 6 SCC 436
- Kotak Mahindra Bank Ltd. v. A. Balakrishnan, (2022) 9 SCC 186
- Tottempudi Salalith v. SBI, (2024) 1 SCC 24
- Haldiram Incorporation (P) Ltd. v. Amrit Hatcheries (P) Ltd., 2023 SCC OnLine SC 1706
- Karad Urban Cooperative Bank Ltd. v. Swwapnil Bhingardevay, (2020) 9 SCC 729
- K. Sashidhar v. Indian Overseas Bank, (2019) 12 SCC 150
- Essar Steel (India) Ltd. CoC v. Satish Kumar Gupta, (2020) 8 SCC 531
- Phoenix ARC Pvt. Ltd. v. Spade Financial Services Ltd., (2021) 3 SCC 475
- Ram Chand & Sons Sugar Mills (P) Ltd. v. Kanhayalal Bhargava, 1966 SCC OnLine SC 215
- Samir Agrawal v. CCI, (2021) 3 SCC 136
- Transcore v. Union of India, (2008) 1 SCC 125
- Bishambhar Prasad v. Arfat Petrochemicals Pvt. Ltd., 2023 SCC OnLine SC 458
- State Bank of India v. Hubtown Bus Terminal (Vadodara) Pvt. Ltd., R/LPA No. 1 of 2022 (Gujarat HC), 18.10.2022
- Mansi Brar Fernandes v. Shubha Sharma, 2025 INSC 1110
- Ebix Singapore (P) Ltd. v. Educomp Solutions Ltd. (CoC), (2022) 2 SCC 401
- Booz Allen & Hamilton Inc. v. SBI Home Finance Ltd., (2011) 5 SCC 532
Statutes/Rules/Regulations Referred
- Insolvency and Bankruptcy Code, 2016: Sections 3(6), 3(8), 3(11), 3(12), 4, 5(7), 5(8)(f) and Explanation, 5(21), 6, 7(1)-(5), 7(5)(a), 8, 9, 10, 12-A, 14, 21(6A), 30(2), 31(1), 32, 53, 60(5)(c), 61(3), 62, 238, 65
- IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016: Regulation 4E; Regulation 16A; Rule 30-A (read with Section 12-A)
- IBBI (Liquidation Process) Regulations, 2016: Regulation 46A
- NCLT Rules, 2016: Rule 8; Rule 11 (inherent powers)
- NCLAT Rules, 2016: Rule 11 (inherent powers)
- SARFAESI Act, 2002: Section 13(2); Security Interest (Enforcement) Rules, 2002: Rule 8(6), Rule 9(1)
- Real Estate (Regulation and Development) Act, 2016 (RERA)
- Code of Civil Procedure, 1908: Section 151
- Consumer Protection Act (referenced contextually)
- Constitution of India: Articles 14, 21
- Companies Act, 2013 (referenced via IBC Section 61 non obstante)
- SWAMIH Fund (contextual, public fund reference)
Key Disposition
- Appeals dismissed. NCLAT’s admission of CIRP upheld; society’s intervention rejected. Directions issued to CoC on recording reasons and disclosure in Information Memorandum.
