# In the matter of Krrish Shalimar Projects Pvt. Ltd. Company Petition No. (IB)-1148 (PB)-2018

> NCLT judgment dated 2019-01-16. Citation: TCN-2019-NCLT-05230. Manjula Khullar & Ors., claiming as financial creditors, filed a petition under Section 7 of…

- **Court:** NCLT
- **Order date:** 16 Jan 2019
- **Citation:** TCN-2019-NCLT-05230
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krrish-shalimar-projects-pvt-ltd-company-petition-no-ib-1148-pb-2018-6c995451

## Summary

### Background

Manjula Khullar & Ors., claiming as financial creditors, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Krrish Shalimar Projects Pvt. Ltd., referred to as the 'Corporate Debtor'. The financial creditors are allottees under a real estate project. The corporate debtor launched a group housing project in January 2012, and the financial creditors booked a flat in Tower B, making an initial payment on 2012-02-25. An Apartment Buyer Agreement was executed on 2013-02-27. The corporate debtor was obligated to hand over possession of the flat by 2016-02-26, or by 2016-11-26 including the grace period, but failed to do so. The petitioners requested a refund on

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## Facts

Manjula Khullar & Ors. (the Petitioners) booked a flat in the 'Ibiza Town' project of M/s Krrish Shalimar Projects Pvt. Ltd. (the Corporate Debtor) in January 2012. The Petitioners made an initial payment on 2012-02-25 and an Apartment Buyer Agreement was executed on 2013-02-27. The total consideration for the flat was Rs. 1,85,92,093/-, which the Petitioners paid to the Corporate Debtor on various dates. As per clause 3.1 of the Apartment Buyer Agreement, the Corporate Debtor was to hand over possession of the flat within 36 months, with a 9-month grace period, making the final deadline 2016-11-26. The Corporate Debtor failed to deliver possession by this date. The Petitioners requested a refund of their deposited amount via email on 2018-07-16, but the Corporate

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## Issues and analysis

### Issue 1: Whether the petitioners, being home buyers, qualify as 'Financial Creditors' under Section 5(7) and …

**Ratio:** The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018, amended Section 5(8) to

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**Reasoning:** The tribunal relied on the amended definition of 'Financial Debt' under Section 5(8) of

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**Interpretation:** The amendment to the Insolvency and Bankruptcy Code clarifies that amounts

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**Application:** In this case, the petitioners, being home buyers who had disbursed money to the

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## Parties

- **Judges:** CHIEF JUSTICE…; S. K. MOH…
- **Appellants:** Manjula K…
- **Respondents:** M/s Krrish…

## Timeline

- **2012-01-01 — Project L…**: Corporate Debtor launched its…
- **2012-02-25 — Initial P…**: Financial Creditors made an…

## Legal provisions

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

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