# In the matter of Kashish Developers Limited C.P. (IB) No.1605-KB-2018

> NCLT judgment dated 2019-11-07. Citation: TCN-2019-NCLT-00683. Dr. S.C. Ahuja and M/s. Jain Estates, as financial creditors, filed an application under…

- **Court:** NCLT
- **Order date:** 7 Nov 2019
- **Citation:** TCN-2019-NCLT-00683
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kashish-developers-limited-cp-ib-no1605-kb-2018-03c94317

## Summary

### Background

Dr. S.C. Ahuja and M/s. Jain Estates, as financial creditors, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Kashish Developers Limited, the corporate debtor. The financial creditors had invested in the corporate debtor's project 'MANOR ONE' in 2012 and jointly booked a unit. They made part payments totaling Rs. 50,35,886/-. However, due to lack of construction progress, they sought cancellation and refund. A demand notice was issued on June 2, 2018, but no reply or refund was received. As of October 19, 2018, Rs. 1,23,18,735/- was outstanding and payable by the corporate debtor.

## Facts

In 2012, M/s. Kashish Developers Limited (Corporate Debtor) approached Dr. S.C. Ahuja and M/s. Jain Estates (Financial Creditors) for investment in their project 'MANOR ONE'. The Financial Creditors jointly booked a unit (Apartment No. C3-11A) in the Group Housing Complex for a total sale consideration of Rs. 1,52,42,725/-. An allotment letter dated November 10, 2012, and an Apartment Buyer's Agreement dated November 30, 2012, were executed. The Financial Creditors paid Rs. 50,35,886/- as part payment. Due to no construction progress, the Financial Creditors sought cancellation and refund. A demand notice dated June 2, 2018, was issued, but no reply or refund was received. As of October 19, 2018, Rs. 1,23,18,735/- was outstanding. The Corporate Debtor claimed delays

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditors under Section 7 of the Insolvency and …

**Ratio:** The basic essential requirements of an application under Section 7 of the Insolvency and

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**Reasoning:** The NCLT was convinced that the Financial Creditors are covered under the definition of

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial

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**Application:** The NCLT found that the Financial Creditors qualified as Home Buyers and that

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** S.C. A…
- **Respondents:** Kashish Developers…; Kashish Developers…
- **Advocates:** Shourjyo Mu…; VishwarupAc…

## Timeline

- **2012-01-01 — Corporate Debtor…**: The Corporate Debtor approached the Financial Creditors seeking investment into their…
- **2012-11-10 — Allotment Lett…**: An allotment letter dated 10th November,…

## 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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