# In the matter of Green Gardens Private Limited & Ors. MA-1203-2019 in CP-709 & 710-IB-CB-2018

> NCLT judgment dated 2021-05-05. Citation: TCN-2021-NCLT-02204. The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 May 2021
- **Citation:** TCN-2021-NCLT-02204
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/green-gardens-private-limited-ors-ma-1203-2019-in-cp-709-710-ib-cb-2018-299bddb0

## Summary

### Background

The application was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking direction to the Respondent to perform his duty under Section 17 and Section 18 of IBC and not to act arbitrarily, and to set aside the order passed by the Respondent on 30.09.2019 and admit the claims of the Applicant dated 26.09.2019. The Applicant had entered into an Agreement of Sale dated 20.08.1995 with M/s. Gemini Arts Private Limited and M/s. Green Gardens Private Limited for the purchase of property in 'Gemini Towers'. The Applicant claims to have paid Rs.2,50,00,000/- towards the consideration. However, the Corporate Debtor abandoned the project. CIRP was initiated against Green Gardens Private Limited on 22.06.2018. The Respondent rejected the Applicant's

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## Facts

M/s. Salem Stainless Steel Suppliers Private Limited (Applicant) entered into an Agreement of Sale dated 20.08.1995 with M/s. Gemini Arts Private Limited and M/s. Green Gardens Private Limited (Corporate Debtors) for purchase of property in 'Gemini Towers' for a consideration of Rs.2,50,00,000/-. The Corporate Debtors abandoned the project. CIRP was initiated against Green Gardens Private Limited on 22.06.2018. The Applicant submitted a claim on 26.09.2019, which was rejected by the Respondent (Resolution Professional) on 30.09.2019 on the grounds that the claim was old, lacked evidence of legal action, and was submitted after the IBC's time frame. The agreement was unregistered. The applicant waited over 25 years to initiate legal action. The applicant only submitted

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## Issues and analysis

### Issue 1: Whether the delay in submitting the claim …

**Ratio:** The Limitation Act applies to matters under Section 238A of the IBC. Even if the delay in

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**Reasoning:** The court reasoned that the Applicant waited for over 25 years to initiate legal action

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**Interpretation:** The interpretation of Section 238A of the IBC, in conjunction with the

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**Application:** The ratio and reasoning were applied to the facts by noting the significant

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** M/s. Salem…
- **Respondents:** M/s. Green…; T.V. Balasubramani…
- **Advocates:** Jayanthi…; Thriyambak J.…

## Timeline

- **1995-08-20 — Agreement o…**: Applicant entered into an Agreement of Sale with Gemini Arts Private Limited and Green…
- **1997-08-19 — Construction Completion…**: Estimated date for completion of construction as per the agreement (24 months from…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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