# In the matter of Alshar Shanti Realtors Pvt. Ltd. MA-999-2018 In C.P.(IB)-1726-(MB)-2017

> NCLT judgment dated 2019-02-25. Citation: TCN-2019-NCLT-04691. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 25 Feb 2019
- **Citation:** TCN-2019-NCLT-04691
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alshar-shanti-realtors-pvt-ltd-ma-999-2018-in-cpib-1726-mb-2017-5962f2ab

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Amish Jaysukhlal Sanghrajka & Anr. against Alshar Shanti Realtors Pvt. Ltd., concerning an operational debt. The petitioners, who were allottees of flats in a real estate project, sought a refund of their deposited amount after noticing discrepancies in the project's registration under the Real Estate (Regulation & Development) Act, 2016. During the pendency of the Section 9 petition, an amendment to the Insolvency and Bankruptcy Code reclassified the debt from 'Operational Debt' to 'Financial Debt'. This prompted the petitioners to seek an amendment to their petition, requesting it be treated as an application under Section 7 of the IBC.

## Facts

Amish Jaysukhlal Sanghrajka & Anr. booked flats (No. 1601 and 1604) in the 'Imperial Heights' project developed by Alshar Shanti Realtors Pvt. Ltd. They made a total payment of ₹71,03,000 against the allotment. Later, they decided to purchase a new home in Andheri and requested a refund. The respondent issued two cheques of ₹4,75,000 each. The petitioners filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) when the refund was not fully processed. During the pendency of the petition, an amendment to the IBC reclassified the debt from 'Operational Debt' to 'Financial Debt' due to an ordinance pronounced on 2018-06-06. The petitioners then sought to amend their petition to be treated as an application under Section 7 of the IBC. The respondent

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## Issues and analysis

### Issue 1: Whether a petition filed under Section 9 of the Insolvency and Bankruptcy Code can be amended to be …

**Ratio:** The amendment to the Insolvency and Bankruptcy Code, specifically the insertion of an

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**Reasoning:** The court reasoned that the amendment to the IBC, coupled with the Supreme Court's

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**Interpretation:** The court interpreted the amendment to the IBC as a substantive change in law

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**Application:** The court applied the ratio and reasoning to the specific facts of the case,

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Amish Jaysukhlal…
- **Respondents:** Alshar Shanti…

## Timeline

- **2017-12-11 — Petition…**: Applicants filed a Petition on…
- **2018-06-06 — IBC Amendment…**: The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, No.6 of 2018 was dated…

## 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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