# In the matter of Lodha Crown Buildmart Private Limited CP 3741 (IB)-MB-2018

> NCLT judgment dated 2019-06-25. Citation: TCN-2019-NCLT-02788. Kanchan Rajmal Jain, a financial creditor, filed a petition (CP 3741/2018) under Section 7 of…

- **Court:** NCLT
- **Order date:** 25 Jun 2019
- **Citation:** TCN-2019-NCLT-02788
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lodha-crown-buildmart-private-limited-cp-3741-ib-mb-2018-46325c5a

## Summary

### Background

Kanchan Rajmal Jain, a financial creditor, filed a petition (CP 3741/2018) under Section 7 of the Insolvency & Bankruptcy Code, 2016, against Lodha Crown Buildmart Private Limited, the corporate debtor, to initiate Corporate Insolvency Resolution Process (CIRP). The petition was filed on 27.09.2018. The petitioner claimed a default of ₹20,44,336/- since 31.12.2016, based on registered Agreements to Sell dated 20.3.2012 & 4.6.2014, receipts issued by the Corporate Debtor confirming payments, and various communications. The petitioner alleged delays in possession of a flat booked with the corporate debtor, leading to a claim for compensation.

## Facts

Kanchan Rajmal Jain filed a petition under Section 7 of the I&B Code against Lodha Crown Buildmart Private Limited, claiming a default of ₹20,44,336/- since 31.12.2016. The claim arose from agreements to sell for a flat, where the petitioner alleged delays in possession and sought compensation. The petitioner relied on agreements dated 20.3.2012 and 4.6.2014, receipts confirming payments, and communications. The corporate debtor reduced the floor construction plan due to government clearance issues, leading to cancellation of the first agreement and subsequent agreements dated 4.6.2015 and 8.3.2016. The fitout date was postponed from 31.12.2015 to 31.12.2016. The petitioner claimed ₹24,50,000/- as compensation for the delay. The respondent offered possession on

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## Issues and analysis

### Issue 1: Whether the petitioner can prove the existence of debt and default on the part of the corporate …

**Ratio:** The proceedings under I&B Code are not a money suit or litigation or recovery

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**Reasoning:** The court reasoned that the petitioner's claim for compensation was not adjudicated by

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**Interpretation:** The I&B Code is designed for resolution of insolvency and not for recovery

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**Application:** The court found that the petitioner could not prove the existence of a clear

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Kanchan Rajmal…
- **Respondents:** Lodha Crown…; Adv.Aksha…

## Timeline

- **2012-03-20 — Agreement t…**: Corporate Debtor entered into an agreement to sell with the Petitioner for a flat on 54th…
- **2014-06-04 — Agreement t…**: Another agreement to sell was…

## 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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