# In the matter of Jasmine Buildmart Private Limited IB-1722-ND-2018

> NCLT judgment dated 2019-11-28. Citation: TCN-2019-NCLT-00416. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 28 Nov 2019
- **Citation:** TCN-2019-NCLT-00416
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jasmine-buildmart-private-limited-ib-1722-nd-2018-1d000191

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by financial creditors (FCs) against Jasmine Buildmart Private Limited (CD). The FCs and CD entered into an Apartment Buyers' Agreement on 07.08.2012 for a unit in the 'Krrish Provence Estate' project. The FCs claimed that they had paid a substantial amount towards the sale consideration but the CD failed to hand over possession of the property. The CD issued a termination notice, which the FCs contested. The FCs sought initiation of Corporate Insolvency Resolution Process (CIRP) against the CD.

## Facts

The Financial Creditors (FCs) and Jasmine Buildmart Private Limited (Corporate Debtor - CD) entered into an Apartment Buyers' Agreement dated 07.08.2012 for Unit No. 1101 in 'Krrish Provence Estate'. The FCs paid Rs. 2,75,55,186/- against the total sale consideration of Rs. 3,80,10,000/-. The CD was to hand over possession within 36 months, with a grace period, effectively by February 2016. The CD issued a termination notice on 26.06.2015 due to non-payment of the balance amount. The FCs sent a demand notice on 28.07.2015 for recovery of the amount paid with interest. The CD sent emails on 22.12.2016 and 25.10.2018 acknowledging the allotment and the amount paid. The FCs sent demand notices on 05.11.2018 seeking a refund of Rs. 6,93,02,755/-. The CD replied on

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## Issues and analysis

### Issue 1: Whether the Application …

**Ratio:** The principle is that limitation is not applicable if the corporate debtor acknowledges

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**Reasoning:** The court noted that the CD had sent various communications to the FCs, including a

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**Interpretation:** The court interpreted these communications as an acknowledgment of debt by the

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**Application:** Based on the communications from the CD to the FCs, the court concluded that

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## Parties

- **Judges:** Ch. Mohd Sharief…; K.K. V…
- **Appellants:** Meera A…
- **Respondents:** Jasmine Buildmart…

## Timeline

- **2012-08-07 — Apartment Buyers'…**: The CD and the FCs entered into…
- **2015-06-26 — Termination…**: The CD issued a notice of…

## 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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