# In the matter of Dreams Infra India Pvt. Ltd Vs. The Competent Authority, Dreamz Infra India Pvt. Ltd., and Other Allied Companies/Entities Writ Petition No.13477/2020(GM-RES)

> HC judgment dated 2021-05-24. Citation: TCN-2021-HC-00028. The case involves a writ petition filed by M/S. Dreams Infra India Pvt. Ltd. against the Competent…

- **Court:** HC
- **Order date:** 24 May 2021
- **Citation:** TCN-2021-HC-00028
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/dreams-infra-india-pvt-ltd-vs-the-competent-authority-dreamz-infra-india-pvt-ltd-8a49a9cf

## Summary

### Background

The case involves a writ petition filed by M/S. Dreams Infra India Pvt. Ltd. against the Competent Authority and others, seeking to quash proceedings initiated under the Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004. The petitioner, a real estate company, is accused of collecting deposits from homebuyers without handing over the apartments. The respondent initiated action under Section 7(1) of the Act, 2004. Meanwhile, three homebuyers filed a petition before the NCLT under Section 7 of the Insolvency and Bankruptcy Act, 2016, leading to the admission of the petition and the commencement of the Corporate Insolvency Resolution Process (CIRP). The petitioner argues that the proceedings under the State Act should be quashed due to the

…

## Facts

M/S. Dreams Infra India Pvt. Ltd., a real estate company, collected advance money from thousands of homebuyers for apartments in under-construction projects since 2012 but did not hand over the apartments. The Competent Authority, appointed by the Government of Karnataka, initiated proceedings against the company under Section 7(1) of the Karnataka Protection of Interest of Depositors in Financial Establishment Act, 2004, vide notification dated 20.06.2019, alleging that the company accepted deposits from 3668 depositors to the tune of Rs. 385 Crores and failed to repay the said amount. Three homebuyers filed a petition before the NCLT under Section 7 of the Insolvency and Bankruptcy Act, 2016, leading to the admission of the petition on 20.08.2019 and the commencement

…

## Issues and analysis

### Issue 1: Whether the proceedings initiated under the Karnataka Protection of Interest of Depositors in …

**Ratio:** The Insolvency and Bankruptcy Code (IBC) has an overriding effect over other laws,

…

**Reasoning:** The court reasoned that the NCLT had already seized the matter by admitting the

…

**Interpretation:** Section 238 of the IBC provides that the provisions of the IBC shall have

…

**Application:** In this case, the proceedings initiated under the Karnataka Protection of

…

## Parties

- **Judges:** H.P. Sa…
- **Appellants:** M/S. Dreams Infra…
- **Respondents:** Dreams Infra…; The Competent…
- **Advocates:** A.Mahesh Ch…

## Timeline

- **2012-01-01 — Inception of…**: M/S. Dreams Infra India Pvt. Ltd. started…
- **2018-01-01 — Attachment of P…**: The respondent-Authority attached all the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(1) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-chandigarh-bench/dreams-infra-india-pvt-ltd-vs-the-competent-authority-dreamz-infra-india-pvt-ltd-8a49a9cf