# In the matter of ABW Infrastructure Limited Company Petition No. (IB)-375(PB)-2018

> NCLT judgment dated 2019-09-12. Citation: TCN-2019-NCLT-01476. The case involves a petition filed by M/s Bipin Industries Private Limited, a financial…

- **Court:** NCLT
- **Order date:** 12 Sept 2019
- **Citation:** TCN-2019-NCLT-01476
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abw-infrastructure-limited-company-petition-no-ib-375pb-2018-12837b30

## Summary

### Background

The case involves a petition filed by M/s Bipin Industries Private Limited, a financial creditor, against M/s ABW Infrastructure Limited, the corporate debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditor invested in the corporate debtor's project, "ABW Gateway Tower," with an agreement for assured monthly returns. The corporate debtor failed to provide the assured returns from December 2014. The corporate debtor was also subject to a winding-up order by the High Court of Delhi. The applicant financial creditor had invested in the project an amount of Rs. 91,54,819/- through four RTGS transactions.

## Facts

M/s Bipin Industries Private Limited (the applicant/financial creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s ABW Infrastructure Limited (the respondent/corporate debtor). The applicant invested Rs. 91,54,819 in the respondent's project, "ABW Gateway Tower," through four RTGS transactions in July 2011. A Memorandum of Understanding (MOU) and a Buyer's Agreement were signed between the parties in 2011, stipulating assured monthly returns to the applicant at Rs. 50 per sq. ft. for the super area purchased until the allotments were leased out. The respondent issued a provisional receipt and allotment letter to the applicant in July 2011. The assured returns were received until December 2014, after which the

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## Issues and analysis

### Issue 1: Whether the Section 7 application is maintainable given the existing winding-up order against the …

**Ratio:** A Section 7 application under the Insolvency and Bankruptcy Code, 2016, is an independent

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**Reasoning:** The court relied on the Supreme Court's observations in Jaipur Metals and Electricals

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**Interpretation:** The Supreme Court has clarified that the initiation of CIRP under Section 7 of

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**Application:** The court applied this principle to the present case, stating that the

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** M/s Bipin…
- **Respondents:** M/s ABW Infrastruc…

## Timeline

- **2011-07-01 — Investment by Financial…**: M/s Bipin Industries Private Limited invested Rs. 91,54,819 in ABW Infrastructure…
- **2011-07-12 — Provisional Receipt…**: Respondent corporate debtor issued…

## 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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