# In the matter of Emaar Hills Township Private Limited CP(IB) No.394-7-HDB-2020

> NCLT judgment dated 2021-06-18. Citation: TCN-2021-NCLT-01950. The case pertains to the maintainability of a Company Petition (CP(IB) No.394/7/HDB/2020) filed…

- **Court:** NCLT
- **Order date:** 18 Jun 2021
- **Citation:** TCN-2021-NCLT-01950
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/emaar-hills-township-private-limited-cpib-no394-7-hdb-2020-71f2f82f

## Summary

### Background

The case pertains to the maintainability of a Company Petition (CP(IB) No.394/7/HDB/2020) filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by allottees/financial creditors against the corporate debtor, Emaar Hills Township Private Limited. The issue arose due to an amendment in the procedure for filing applications under Section 7 of the IBC by allottees/financial creditors against corporate debtors, specifically concerning the requirement for a joint application by a certain number of allottees.

## Facts

Mr. Srinivas Manthena and Mrs. Padmaja Manthena, residing in California, USA, filed a Company Petition (CP(IB) No.394/7/HDB/2020) under Section 7 of the IBC as financial creditors against Emaar Hills Township Private Limited, the corporate debtor. The petition was filed due to the corporate debtor's alleged default. The case was heard by the National Company Law Tribunal (NCLT), Hyderabad Bench. The maintainability of the petition was questioned in light of the Supreme Court's judgment regarding homebuyers and the amendment to Section 7 of the IBC, which introduced a threshold for allottees to jointly file applications. There were numerous other applications filed by homebuyers against the same builder/developer pending consideration.

## Issues and analysis

### Issue 1: Whether the Application filed by single allottee under section 7 of IBC and pending for …

**Ratio:** The third proviso to Section 7(1) of the IBC, introduced via amendment, imposes a

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**Reasoning:** The Hon'ble Supreme Court in Monish Kumar Vs Union of India clarified that while the

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**Interpretation:** The amendment requires allottees to meet a minimum threshold (either a certain

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**Application:** The Adjudicating Authority considered the Supreme Court's ruling and concluded

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## Parties

- **Judges:** Madan B.…; Veera Brahma Rao…
- **Appellants:** Srinivas Ma…
- **Respondents:** Emaar Hills…; Emaar Hills…

## Timeline

- **2020-01-01 — CP(IB) F…**: CP(IB) No.394/7/HDB/2020 filed…
- **2020-03-13 — Amendment…**: Section 7(1) of I&B Code, 2016 has been amended, introducing a threshold for financial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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