# In the matter of Loon Land Developers Ltd. (IB)-(PP)-03(PB)-2021

> NCLT judgment dated 2021-11-29. Citation: TCN-2021-NCLT-00371. The corporate debtor filed an application under Chapter III A of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 29 Nov 2021
- **Citation:** TCN-2021-NCLT-00371
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/loon-land-developers-ltd-ib-pp-03pb-2021-5a2413ef

## Summary

### Background

The corporate debtor filed an application under Chapter III A of the Insolvency and Bankruptcy Code, 2016, for the initiation of a Pre-Packaged Insolvency Resolution Process (PPIRP) due to default in respect of operational creditors.

## Facts

M/s. Loon Land Development Limited, the corporate debtor, filed an application under Chapter III A of the Insolvency and Bankruptcy Code, 2016, seeking to initiate a Pre-Packaged Insolvency Resolution Process (PPIRP). The application was filed under Section 54C read with Rule 4 of the IBBI (PPIRP) Regulations, 2021. The corporate debtor is a registered MSME with the Ministry of Micro, Small and Medium Enterprises, registered on September 7, 2021, and as a corporate entity on April 2, 2014. The corporate debtor defaulted on payments to operational creditors, with the default exceeding Rs. 10 lakhs, as evidenced by an invoice dated July 16, 2021, and subsequent reminders. The application included an affidavit confirming the corporate debtor's eligibility to submit a

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## Issues and analysis

### Issue 1: Whether the corporate debtor has complied with the eligibility criteria and procedural requirements …

**Ratio:** An application for PPIRP can be admitted if the corporate debtor, being an eligible MSME,

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**Reasoning:** The NCLT reviewed the application and supporting documents, including the UDYAM

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**Interpretation:** The court interpreted **Section 54A** as laying down specific conditions and

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**Application:** The corporate debtor, M/s. Loon Land Development Ltd., being a registered MSME,

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## Parties

- **Judges:** Ramalingam…; HEMANT KUMAR…
- **Appellants:** Loon Land…
- **Respondents:** Loon Land…
- **Advocates:** P. Na…; Saurabh…; +4 more

## Timeline

- **April 2, 2014 — Company Regis…**: M/s. Loon Land Development Limited was…
- **July 16, 2021 — Invoice…**: Invoice issued, leading to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54C — Application to initiate pre-packaged insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54c)

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