# In the matter of AKME Projects Ltd. CA-328-2018 in (IB)-55-ND-2018

> NCLT judgment dated 2018-10-09. Citation: TCN-2018-NCLT-00626. CA 328/2018 was filed on behalf of AKME RAAGA Flat Buyers Association, considered as Financial…

- **Court:** NCLT
- **Order date:** 9 Oct 2018
- **Citation:** TCN-2018-NCLT-00626
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akme-projects-ltd-ca-328-2018-in-ib-55-nd-2018-68e53539

## Summary

### Background

CA 328/2018 was filed on behalf of AKME RAAGA Flat Buyers Association, considered as Financial Creditors, seeking the lifting of the moratorium imposed on certain court proceedings after the admission of the insolvency petition. The Corporate Debtor is a Real Estate Developer. The applicant is a society of members who purchased/booked flats in the Residential Group Housing Project 'AKME RAAGA'. The applicant argues that insolvency proceedings were initiated malafidely by the Corporate Debtor through its employees to defeat the claims of the association members. They claim the Corporate Debtor is taking refuge under the moratorium to stall court proceedings against it. The applicant has enlisted five pending cases against the Corporate Debtor and seeks their release

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## Facts

Mr. Hari Kishan Sharma initiated insolvency proceedings against M/s. AKME Projects Ltd. AKME RAAGA Flat Buyers Association, now considered Financial Creditors, filed CA 328/2018 seeking to lift the moratorium imposed on certain court proceedings. The Corporate Debtor, M/s. AKME Projects Ltd., is a Real Estate Developer. The applicant association claims the insolvency proceedings were initiated malafidely to defeat their claims. Five cases are pending against the Corporate Debtor, including a suit challenging the validity of an agreement to sell, an appeal arising from a civil judge's order, an appeal challenging a sale notice under the SARFAESI Act, a writ petition, and a consumer case seeking possession of flats. The applicant argues that the moratorium is being used

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## Issues and analysis

### Issue 1: Whether the moratorium imposed on court proceedings against the Corporate Debtor, M/s. AKME …

**Ratio:** The intention of the legislature is to afford the Corporate Debtor a chance to revive and

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**Reasoning:** The court reasoned that lifting the moratorium would allow diverse proceedings to

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**Interpretation:** The court interpreted the provisions of the IBC to prioritize the resolution

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**Application:** The court applied the ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Hari Kishan…
- **Respondents:** M/s. AKME…

## Timeline

- **2018-10-09 — Order Del…**: Order delivered on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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