# In the matter of A & A Shelters Pvt. Ltd. TCP No. 581-I&BC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-04-09. Citation: TCN-2018-NCLT-01574. The case originates from a petition transferred from the Hon'ble High Court at Bombay…

- **Court:** NCLT
- **Order date:** 9 Apr 2018
- **Citation:** TCN-2018-NCLT-01574
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-a-shelters-pvt-ltd-tcp-no-581-ibc-nclt-mb-mah-2017-5685449b

## Summary

### Background

The case originates from a petition transferred from the Hon'ble High Court at Bombay Judicature, initially filed as Company Petition (L) No.880 of 2016. The petition was filed under Ordinary Original Civil Jurisdiction on April 30, 2015, seeking winding up of A & A Shelters Pvt. Ltd. under sections 433(e) and 434 of the Companies Act, 1956, due to a debt of ₹1,03,42,500. The debt arose from a Memorandum of Understanding (MoU) where A & A Shelters Pvt. Ltd. (Corporate Debtor) was to sell a flat to Punit Pawankumar Agarwal (Operational Creditor).

## Facts

Punit Pawankumar Agarwal (Operational Creditor) filed a petition against A & A Shelters Pvt. Ltd. (Corporate Debtor) seeking initiation of CIRP due to a debt of ₹1,03,42,500. The debt originated from an MoU dated December 21, 2012, where the Corporate Debtor agreed to sell a flat to the Petitioner for ₹1,13,95,000. The Petitioner also agreed to purchase a covered parking space for ₹7,00,000. The Petitioner claimed to have paid the entire consideration amount of ₹1,03,42,500. However, the Corporate Debtor failed to commence construction and provide possession of the flat. The Corporate Debtor allegedly refunded ₹60,47,500 via a cheque dated November 18, 2014, which was dishonored on February 25, 2015, due to insufficient funds. The Petitioner issued a demand notice

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted …

**Ratio:** The legal principle applied is that if a corporate debtor fails to make payments as per

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**Reasoning:** The court considered the totality of the circumstances, including the MoU, the dishonored

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**Interpretation:** The interpretation of 'default' under the I&B Code encompasses not only the

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**Application:** In this case, the Corporate Debtor's failure to provide possession of the flat,

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Punit Pawankumar…
- **Respondents:** A & A Shelters…

## Timeline

- **2012-12-21 — MoU Date…**: Memorandum of Understanding (MoU) signed between Punit Pawankumar Agarwal and A & A…
- **2014-11-18 — Cheque Issu…**: A & A Shelters Pvt. Ltd. issued cheque No.492722 for ₹60,47,500 to Punit Pawankumar…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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