# In the matter of Baibhav Properties Private Limited CP (IB) No. 115-CTB-2019

> NCLT judgment dated 2021-11-30. Citation: TCN-2021-NCLT-00328. The case involves an application filed by Gaja Laxmi Construction, an operational creditor,…

- **Court:** NCLT
- **Order date:** 30 Nov 2021
- **Citation:** TCN-2021-NCLT-00328
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/baibhav-properties-private-limited-cp-ib-no-115-ctb-2019-69859d45

## Summary

### Background

The case involves an application filed by Gaja Laxmi Construction, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Baibhav Properties Private Limited. The operational creditor claimed that the corporate debtor defaulted on payments for civil construction work. The corporate debtor admitted to some liability but disputed the total amount claimed.

## Facts

Gaja Laxmi Construction, a sole proprietorship, filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Baibhav Properties Private Limited, a corporate debtor. Gaja Laxmi Construction claimed that Baibhav Properties Private Limited defaulted on payments for civil construction work. The operational creditor raised 23 tax invoices for a sum of Rs. 3,41,95,626/-. The corporate debtor paid Rs. 2,47,17,671/- after deducting Rs. 6,03,997/- towards TDS, leaving a balance of Rs. 88,73,958/-. The last payment was made on 06.10.2016. The operational creditor sent a statutory demand notice dated 25.07.2019, which was delivered on 03.07.2019. The corporate debtor replied on

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## Issues and analysis

### Issue 1: Whether the Application …

**Ratio:** The NCLT relied on previous judgments, including Neeta Saha vs Ram Niwas Gupta, which

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**Reasoning:** The NCLT considered the argument that a sole proprietorship cannot initiate CIRP because

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**Interpretation:** The NCLT interpreted the provisions of the IBC and relevant case laws to

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**Application:** The NCLT applied the ratio and reasoning to the facts of the case and concluded

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Santosh Kumar…
- **Respondents:** Baibhav Properties…
- **Advocates:** Arabinda A…

## Timeline

- **2016-10-06 — Last Pay…**: Last payment of Rs.10,00,000/- was…
- **2019-07-25 — Demand N…**: Operational creditor sent…

## 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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