# In the matter of Bhattad Brothers Realty Pvt. Ltd. CP (IB)-4172-MB-2019

> NCLT judgment dated 2021-12-15. Citation: TCN-2021-NCLT-00162. Rangbarshi Projects Pvt Ltd, the Financial Creditor (FC), initiated Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 15 Dec 2021
- **Citation:** TCN-2021-NCLT-00162
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhattad-brothers-realty-pvt-ltd-cp-ib-4172-mb-2019-4655ccfa

## Summary

### Background

Rangbarshi Projects Pvt Ltd, the Financial Creditor (FC), initiated Corporate Insolvency Resolution Process (CIRP) against Bhattad Brothers Realty Pvt Ltd, the Corporate Debtor (CD), due to a default of Rs 1,55,24,575 with interest of Rs 6,89,036 up to 08.08.2019, totaling Rs 1,62,13,611. A prior CIRP petition was filed on 24.07.2018, but was withdrawn on 14.03.2019 after a settlement agreement where the CD acknowledged its liability and agreed to pay Rs 1,95,24,575 in installments. However, the CD failed to make timely payments, leading to the current petition.

## Facts

Rangbarshi Projects Pvt Ltd (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bhattad Brothers Realty Pvt Ltd (Corporate Debtor). The Corporate Debtor defaulted on payments amounting to Rs 1,55,24,575 with interest of Rs 6,89,036 up to 08.08.2019, totaling Rs 1,62,13,611. A previous CIRP petition was withdrawn after a settlement agreement was reached on 15.02.2019, where the Corporate Debtor agreed to pay Rs 1,95,24,575 in 20 installments. The Corporate Debtor failed to make timely payments as per the settlement agreement. The Financial Creditor submitted documents including bank statements, money receipts, demand promissory notes, dishonored cheques, and

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor committed a default …

**Ratio:** The legal principle is that a default occurs when a debt is due and payable, and the

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**Reasoning:** The court relied on the documents submitted by the Financial Creditor, including bank

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**Interpretation:** The interpretation of 'default' under Section 7 of the IBC includes any failure

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**Application:** The court applied the ratio to the facts by finding that the Corporate Debtor's

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## Parties

- **Judges:** P.N. Des…; K.K. V…
- **Appellants:** Rangbarshi…
- **Respondents:** Bhattad Brothers…

## Timeline

- **2018-07-24 — Prior CIRP…**: A prior petition i.e. CP (IB)/2809/MB/2018 for initiating CIRP was filed on 24.07.2018,…
- **2019-02-15 — Settlement Ag…**: The FC and the CD entered into a Settlement Agreement wherein the CD acknowledged its…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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