# In the matter of Colorhome Developers Pvt. Ltd. CP-358-(IB)-2018

> NCLT judgment dated 2018-10-25. Citation: TCN-2018-NCLT-00497. The case involves a petition filed by M/s. Vinayaka Exports and Mrs. Divya M. Jain (Financial…

- **Court:** NCLT
- **Order date:** 25 Oct 2018
- **Citation:** TCN-2018-NCLT-00497
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/colorhome-developers-pvt-ltd-cp-358-ib-2018-6e31bb8d

## Summary

### Background

The case involves a petition filed by M/s. Vinayaka Exports and Mrs. Divya M. Jain (Financial Creditors) against M/s. Colorhome Developers Private Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The financial creditors claimed default on a loan amount. The corporate debtor contested the claim, stating that the amounts were borrowed by a sole proprietorship concern, M/s. Colorhomes, and not directly by the company. The respondent also raised disputes regarding the amount due, the applicability of Section 7 of the IBC, and the existence of a pending civil suit.

## Facts

M/s. Vinayaka Exports and Mrs. Divya M. Jain, claiming to be financial creditors, filed a petition against M/s. Colorhome Developers Private Limited, the corporate debtor, under Section 7 of the IBC, 2016. The financial creditors alleged a default on a loan amount. The corporate debtor is a private limited company incorporated on 28.05.2010. The financial creditors claimed that the corporate debtor defaulted on an amount of ₹10,14,53,750 as of 31.12.2017, with the date of default being December 2016. The corporate debtor argued that the loan was taken by the sole proprietorship, M/s. Colorhomes, and not by the company itself. The corporate debtor also pointed out that the petitioners had filed a legal notice admitting that the cheques were issued to M/s. Colorhomes.

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## Issues and analysis

### Issue 1: Whether the debt was owed by the corporate debtor, M/s. Colorhome Developers Private Limited, or by …

**Ratio:** The principle is that a corporate debtor is only liable for debts it has directly

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**Reasoning:** The Tribunal observed that the statements of accounts and legal notices submitted by both

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**Interpretation:** This issue involves interpreting the scope of corporate liability under the

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**Application:** In this case, the Tribunal applied the principle by examining the loan

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** M/s.Vinayaka…
- **Respondents:** M/s.Colorhome…

## Timeline

- **2010-05-28 — Incorporation of…**: M/s.Colorhome Developers Private Limited…
- **2012-08-10 — Disbursement by 1st…**: ₹8.20 crores disbursed…

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