# In the matter of Akshar Shanti Realtors Private Limited C.P (IB) No. 1726-MB-C-II-2017

> NCLT judgment dated 2021-10-05. Citation: TCN-2021-NCLT-00860. This case involves a Company Petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 5 Oct 2021
- **Citation:** TCN-2021-NCLT-00860
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akshar-shanti-realtors-private-limited-cp-ib-no-1726-mb-c-ii-2017-d8305e6a

## Summary

### Background

This case involves a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Mr. Amish Jaysukhlal Sanghrajka & Anr. ("the Financial Creditors"), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Akshar Shanti Realtors Private Limited ("the Corporate Debtor"). The petitioners, who are flat allottees, claim that the corporate debtor failed to complete construction and register the project 'Wing E' of Imperial Heights under the Real Estate (Regulation and Development) Act, 2016 (RERA), leading to frustration of contract and default in repayment of amounts paid by them.

## Facts

Mr. Amish Jaysukhlal Sanghrajka and Mrs. Aparna Amish Sanghrajka (Petitioners) booked flats (No. 1601 and 1604) in Wing 'E' of the 'Imperial Heights' project developed by Akshar Shanti Realtors Private Limited (Corporate Debtor). The Petitioners paid Rs. 49,28,000 and Rs. 21,75,000 respectively towards the flats. The Corporate Debtor failed to construct the building 'Wing – E' and register it under the Real Estate (Development & Regulation) Act, 2016. The Petitioners requested the Corporate Debtor to repay the amounts received. The Corporate Debtor made a partial repayment of Rs. 4,75,000 but subsequently refused to repay the remaining amount. The Petitioners issued a demand notice dated 23rd November 2017, which the Corporate Debtor failed to comply with. The

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## Issues and analysis

### Issue 1: Whether the Petitioners qualify as 'financial creditors' under Section 7 of the IBC, considering …

**Ratio:** The explanation to Section 5(8)(f) of the IBC stipulates that the expressions 'allottee'

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**Reasoning:** The court relied on the Bombay High Court's decision in Macrotech Developers Ltd. v.

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**Interpretation:** The interpretation of the term 'financial creditor' under the IBC is linked to

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**Application:** Since the 'Wing E' project was not registered under RERA, the Petitioners,

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## Parties

- **Judges:** Ashok Kumar…; Shyam Babu…
- **Appellants:** Amish Jaysukhlal…
- **Respondents:** Akshar Shanti…

## Timeline

- **2015-07-31 — Allotment o…**: Petitioners were allotted Flat Nos. 1601 and 1604 on the 16th Floor in Wing 'E' of the…
- **2017-11-23 — Demand N…**: Demand notice was 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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