# In the matter of Balajidham Buildestates Pvt. Ltd. IA No. 84,97,124,126,153,193 & 229-JPR-2019 (Dairy No. 1385-2019) in IB No. - 726-ND-2018 (TA No. 70-2018)

> NCLT judgment dated 2019-09-06. Citation: TCN-2019-NCLT-01525. The case involves an application by Manohar Karamchandani, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 6 Sept 2019
- **Citation:** TCN-2019-NCLT-01525
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/balajidham-buildestates-pvt-ltd-ia-no-8497124126153193-229-jpr-2019-dairy-no-138-82bc324c

## Summary

### Background

The case involves an application by Manohar Karamchandani, an operational creditor, against Balajidham Buildestates Pvt. Ltd., the corporate debtor, for initiating the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Tribunal admitted the insolvency petition on 02.11.2018 and appointed Ms. Sarita Duck as the Interim Resolution Professional (IRP). Several Interim Applications (IAs) were filed during the CIRP, addressing various issues such as claims from homebuyers, directions to handover possession of properties, and extension of the CIRP period. The Committee of Creditors (CoC) convened multiple meetings to discuss the resolution process. Ultimately, no resolution plan was approved, leading to the decision

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## Facts

Manohar Karamchandani, an operational creditor, filed an application against Balajidham Buildestates Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, for non-payment of dues. The Tribunal admitted the application on 02.11.2018 and appointed Ms. Sarita Duck as the Interim Resolution Professional (IRP). Public announcements were made, and claims were invited from creditors, including financial creditors, operational creditors, workmen, employees, and homebuyers. The Committee of Creditors (CoC) was formed and convened multiple meetings. The IRP filed several applications seeking directions on various issues, including the possession of properties, the verification of claims, and the extension of the CIRP period. The corporate

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## Issues and analysis

### Issue 1: Whether the application for initiating Corporate Insolvency Resolution Process (CIRP) under Section …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The Tribunal was convinced that the corporate debtor had defaulted on the payment of dues

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the

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**Application:** The Tribunal applied Section 9 to the facts of the case, where the operational

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## Parties

- **Judges:** POONDLA BHASKARA…; RaghuNa…
- **Appellants:** Manohar Karamchand…
- **Respondents:** Balajidham…

## Timeline

- **2018-11-02 — Admission of Insolvency…**: The Tribunal admitted the insolvency…
- **2018-11-02 — Appointment…**: Ms. Sarita Duck was appointed as the…

## 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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