# In the matter of Wave Megacity Centre Private Limited vs. Rakesh Taneja & Ors.,Company Appeal (AT) (Insolvency) No. 918 of 2022

> NCLAT judgment dated 2023-01-05. Citation: TCN-2023-NCLAT-00787. This case involves an appeal filed by Wave Megacity Centre Private Limited, a Corporate…

- **Court:** NCLAT
- **Order date:** 5 Jan 2023
- **Citation:** TCN-2023-NCLAT-00787
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/wave-megacity-centre-private-limited-vs-rakesh-taneja-orscompany-appeal-0455580c

## Summary

### Background

This case involves an appeal filed by Wave Megacity Centre Private Limited, a Corporate Debtor, challenging an order dated 06.06.2022 passed by the National Company Law Tribunal (NCLT), New Delhi, Principal Bench. The NCLT order allowed IA No.2026 of 2021 and IA No.2378 of 2021 filed under Section 65 of the Insolvency and Bankruptcy Code, 2016 (IBC), and dismissed Company Petition No. (IB) No.197(PB)/2021 filed by the Appellant under Section 10 of the IBC. The case arises from a lease deed between Noida Authority and Wave Megacity Ltd. where Wave Megacity failed to complete construction and repay the premium amount. Homebuyers filed applications under Section 65 alleging fraudulent intent in filing the Section 10 application.

## Facts

Wave Megacity Centre Private Limited, the Corporate Debtor, entered into a lease deed with Noida Authority on 02.09.2011 for land in Sectors 25A and 32, NOIDA. Wave Megacity paid 10% of the total consideration (Rs.662.29 Crores) but failed to pay the remaining 90% and complete construction. The Appellant launched residential and commercial projects, promising possession by 2016, but failed to deliver despite receiving 90% consideration from homebuyers. The State Government announced the Project Settlement Policy (PSP) in 2016, under which Wave Megacity surrendered a portion of the land. Noida Authority demanded payment of Rs.2717,53,65,192/- in 2020, which Wave Megacity challenged. The Corporate Debtor filed an application under Section 10 of the IBC on 25.03.2021,

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed an error in rejecting the Section 10 Application filed …

**Ratio:** The Adjudicating Authority can reject a Section 10 application if it finds that it was

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**Reasoning:** The Adjudicating Authority found that the Section 10 application was filed to escape

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**Interpretation:** Section 10 of the IBC should be read in conjunction with Section 65. While

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**Application:** In this case, the Adjudicating Authority's finding of malicious intent was

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Respondents:** Wave Megacity…; Rakesh T…
- **Advocates:** A.N.S. Na…; Hardeep Sa…; +10 more

## Timeline

- **2011-09-02 — Lease De…**: Lease Deed signed between Noida…
- **2016-01-01 — Project Settlement…**: State Government of Uttar Pradesh announced…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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