# In the matter of Hector Realty Ventures Pvt. Ltd. (IB) 1051 (ND)-2019

> NCLT judgment dated 2019-12-09. Citation: TCN-2019-NCLT-00267. The case involves a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 9 Dec 2019
- **Citation:** TCN-2019-NCLT-00267
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hector-realty-ventures-pvt-ltd-ib-1051-nd-2019-124acb8c

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, by multiple financial creditors against M/S Hector Realty Ventures Pvt Ltd, the corporate debtor. The financial creditors claim default on payments for residential apartments in the 'Marvella City' project located in Haridwar, Uttarakhand. The corporate debtor had assured completion by 2017. Financial creditors made bookings and payments, but the project was delayed, and possession was not provided. Builder Buyer Agreements and Memorandums of Understanding were entered into, with clauses for assured returns. Post-dated cheques (PDCs) issued by the corporate debtor were dishonored. Legal notices were served demanding repayment, but the defaults persisted.

## Facts

Multiple financial creditors (Anand Prakash Soni, Sourabh Soni, Suraj Prakash Soni, Durga Devi Soni, Shalu Soni, Ram Raj Soni, Deepika Soni, Yogita Soni, Nikita Soni, and Pooja Soni) filed a petition against M/S Hector Realty Ventures Pvt Ltd, the corporate debtor, under Section 7 of the Insolvency & Bankruptcy Code, 2016. The financial creditors claimed defaults on payments related to residential apartments in the 'Marvella City' project in Haridwar, Uttarakhand, launched in June 2015. The corporate debtor assured completion by 2017. The financial creditors made bookings and partial payments, with the total default amount claimed to be Rs. 25,60,000/- as of February 2019. Builder Buyer Agreements and Memorandums of Understanding were executed, including clauses

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor defaulted on its financial obligations to the Financial Creditors …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court considered the averments made by the financial creditors, the Builder Buyer

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**Interpretation:** Section 7 of the IBC is interpreted to mean that if a financial debt exists and

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**Application:** The court applied the ratio to the facts, noting that the financial creditors

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## Parties

- **Judges:** (RETD.) RAJESH…; SUMITAPURKA…
- **Appellants:** Anand Praka…
- **Respondents:** M/S HECTOR REALTY…

## Timeline

- **2015-06-01 — Project L…**: Corporate Debtor launched 'Marvella…
- **2017-08-01 — Builder Buyer…**: Corporate Debtor and Financial Creditors entered into Builder Buyer Agreements and…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/hector-realty-ventures-pvt-ltd-ib-1051-nd-2019-124acb8c