# In the matter of Canopy Estate Pvt. Ltd. I.A No. 253 & 257 of 2022 in CP (IB) No.21-BB-2020

> Read the full IBC case summary for In the matter of Canopy Estate Pvt. Ltd. I.A No. 253 & 257 of 2022 in CP (IB) No.21-BB-2020. NCLT judgment dated…

- **Court:** NCLT
- **Order date:** 9 Jun 2023
- **Citation:** TCN-2023-NCLT-05471
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/canopy-estate-pvt-ltd-ia-no-253-257-of-2022-in-cp-ib-no21-bb-2020-d831aef3

## Summary

### Background

The applicants, land owners of the Canopy Crest Classic Project, filed an application under Section 60(5) of the IBC, 2016 to confine the Corporate Insolvency Resolution Process (CIRP) to a particular project, Canopy Signature, and prevent it from affecting other projects of the corporate debtor. The corporate debtor, Canopy Estates Pvt. Ltd., had undertaken three projects: Canopy Crest Signature, Canopy Crest IRS, and Canopy Crest Classic. The CIRP was initiated against the corporate debtor on June 6, 2022.

## Facts

The corporate debtor, Canopy Estates Pvt. Ltd., is involved in three projects: Canopy Crest Signature, Canopy Crest IRS, and Canopy Crest Classic. The Adjudicating Authority initiated CIRP against the corporate debtor on June 6, 2022, in C.P.(IB)No. 21/BB/2020, imposing a moratorium and appointing Mr. Girish Kambadaraya as the Interim Resolution Professional (IRP). A public announcement was made on June 10, 2022, and the IRP began collecting claims and determining the corporate debtor's financial position to constitute a Committee of Creditors (CoC).

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) initiated against Canopy Estates Pvt.…

**Ratio:** CIRP against a real estate company must be limited to the specific project to which the…

**Reasoning:** The NCLAT judgments in Flatbuyers Association Winter Hills-77 and Ram Kishor Arora…

**Interpretation:** The court interpreted **Sections 42 and 60(5) of IBC, 2016** read with **Rule…

**Application:** Applying this interpretation, the Tribunal directed that the CIRP initiated on…

## Parties

- **Judges:** (Retd.) T.…; Manoj Kumar…
- **Advocates:** For the Applicant…; Giris…

## Timeline

- **June 17, 2010 — Joint Development…**: Land owners and Developers/CEPL entered into a Joint Development Agreement (JDA) for the…
- **June 21, 2010 — JDA Regist…**: The Joint Development…

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