# In the matter of Green Peace Construction Pvt. Ltd. CP-344-IB-2018

> NCLT judgment dated 2018-08-27. Citation: TCN-2018-NCLT-00896. The case involves an application filed by Ajanta Flat Owners' Association (Operational…

- **Court:** NCLT
- **Order date:** 27 Aug 2018
- **Citation:** TCN-2018-NCLT-00896
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/green-peace-construction-pvt-ltd-cp-344-ib-2018-e47ef65c

## Summary

### Background

The case involves an application filed by Ajanta Flat Owners' Association (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Green Peace Construction Private Limited (Corporate Debtor) for an outstanding debt of Rs. 1,15,00,000/- along with Rs. 31,08,588/-. The Operational Creditor claimed that the Corporate Debtor failed to complete substantial work relating to other facilities including provision for two gensets, lift, external painting, provision of the reticulated gas connection, and compound wall and gym equipment among others, as per a Joint Development Agreement (JDA) dated 07.03.2010. The Corporate Debtor acknowledged the outstanding list of pending jobs in a communication dated 02.01.2015. The Operational Creditor

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## Facts

Ajanta Flat Owners' Association (Operational Creditor) filed an application against Green Peace Construction Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed an outstanding debt of Rs. 1,15,00,000/- along with Rs. 31,08,588/-. A Joint Development Agreement (JDA) dated 07.03.2010 existed between the parties for the construction of 54 flats. The Corporate Debtor completed the structure but failed to complete other facilities. The Corporate Debtor acknowledged pending jobs in a communication dated 02.01.2015. The Operational Creditor demanded a Bank Guarantee, but the Corporate Debtor agreed to deposit Rs. 50 Lakhs. A post-dated cheque of Rs. 1 Crore was issued but returned due to insufficient

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016, allows an operational creditor to

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**Reasoning:** The court found that the Operational Creditor had fulfilled the requirements of Section 9

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**Interpretation:** Section 9 provides a mechanism for operational creditors to recover outstanding

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**Application:** The court applied Section 9 to the facts of the case, finding that the

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** AJANTHA FLAT…
- **Respondents:** Green Peace…; Green Peace…

## Timeline

- **2010-03-07 — Joint Development…**: The Corporate Debtor entered into a Joint Development Agreement (JDA) with the members of…
- **2015-01-02 — Communication from…**: The Corporate Debtor sent a communication to the Secretary, Ajanta Flat Owners'…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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