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

> NCLT judgment dated 2021-12-15. Citation: TCN-2021-NCLT-00158. Rangbarshi Projects Pvt Ltd, the Financial Creditor (FC), initiated Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 15 Dec 2021
- **Citation:** TCN-2021-NCLT-00158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhattad-brothers-realty-pvt-ltd-cp-ib-4172-mb-2019-ab0f2835

## 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 plus interest, totaling Rs 1,62,13,611, as of 08.08.2019. This was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. A prior CIRP petition had been filed in 2018, which was withdrawn after a settlement agreement was reached on 15.02.2019, where the CD acknowledged its liability and agreed to pay Rs 1,95,24,575 in installments.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 (IBC), 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Bhattad Brothers Realty Pvt Ltd (Corporate Debtor). The Corporate Debtor defaulted on 19.03.2019, owing 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 A prior CIRP petition was filed on 24.07.2018, which was withdrawn on 14.03.2019 after a settlement agreement was reached on 15.02.2019, where the Corporate Debtor agreed to pay Rs 1,95,24,575 in 20 installments.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

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on …

**Ratio:** A default occurs when a debtor fails to pay a

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

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**Interpretation:** The legal principle is that a default is established when the debtor fails to

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**Application:** The court applied the ratio to the facts by examining the Financial Creditor's

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## Parties

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

## Timeline

- **2018-07-24 — Prior CIRP Petition…**: A prior CIRP petition (CP (IB)/2809/MB/2018) was filed against the Corporate Debtor…
- **2019-02-15 — Settlement Ag…**: The Financial Creditor and Corporate Debtor entered into a Settlement Agreement where the…

## 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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