# In the matter of Navin Raheja Vs. Shilpa Jain and Others Company Appeal (AT) (Insolvency) No. 864 of 2019

> NCLAT judgment dated 2020-01-22. Citation: TCN-2020-NCLAT-00511. The case involves an appeal against the initiation of Corporate Insolvency Resolution Process…

- **Court:** NCLAT
- **Order date:** 22 Jan 2020
- **Citation:** TCN-2020-NCLAT-00511
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/navin-raheja-vs-shilpa-jain-and-others-company-appeal-5ea4116c

## Summary

### Background

The case involves an appeal against the initiation of Corporate Insolvency Resolution Process (CIRP) against Raheja Developers Ltd. ('Corporate Debtor') based on an application filed by Ms. Shilpa Jain and Mr. Akash Jain (allottees) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority (National Company Law Tribunal), Special Bench, New Delhi, initiated CIRP against the Corporate Debtor via an order dated August 20, 2019. The appellant, a shareholder/promoter, challenged the order, alleging fraudulent and malicious initiation of proceedings with an intent other than resolution of insolvency or liquidation. The appellant also claimed the application was barred by limitation and not maintainable.

## Facts

Ms. Shilpa Jain and Mr. Akash Jain (allottees) booked an apartment in 'Raheja's Sampada', a residential project by 'Raheja Developers Ltd.' ('Corporate Debtor'). A joint allotment letter and Flat Buyer's Agreement were executed on August 3, 2012. The allottees disbursed Rs. 86,62,691/- to the 'Corporate Debtor' on different dates. As per the agreement, possession was to be provided within 36 months from August 3, 2012, ending on August 3, 2015, but construction was not completed. The 'Corporate Debtor' claimed to have issued a notice of possession on November 15, 2016, and alleged the allottees refused to take possession. The 'Corporate Debtor' also filed a Writ Petition challenging the constitutional validity of certain sections of the I&B Code. The allottees

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## Issues and analysis

### Issue 1: Whether the ‘Corporate Debtor' can be held to have committed default, if apartment/flat/ premises …

**Ratio:** The ratio is based on the interpretation of 'force majeure' clauses in the Flat Buyer's

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**Reasoning:** The court reasoned that if the delay in offering possession was due to reasons beyond the

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**Interpretation:** The interpretation involves understanding the scope and applicability of 'force

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**Application:** The court applied this ratio to the specific facts by considering the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Navin R…
- **Respondents:** Raheja Developers…; Shilpa…

## Timeline

- **2012-08-03 — Agreement Ex…**: Joint allotment letter and Flat Buyer's Agreement executed between 'Corporate Debtor' and…
- **2015-08-03 — Original Posses…**: Original deadline for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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