# In the matter of Magic Info Solutions Private Limited C.P. No. IB-1352- (ND)-2019

> NCLT judgment dated 2019-09-05. Citation: TCN-2019-NCLT-01548. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 Sept 2019
- **Citation:** TCN-2019-NCLT-01548
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/magic-info-solutions-private-limited-cp-no-ib-1352-nd-2019-d49d5f80

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by three financial creditors (home buyers) against Magic Info Solutions Private Limited, the corporate debtor. The petitioners booked individual apartments in the 'Godrej Summit' project developed by the corporate debtor in 2013. Allotment letters were issued, and apartment buyer agreements were entered into. The petitioners claim that the corporate debtor defaulted by failing to hand over possession of the flats within the agreed period, including a grace period.

## Facts

Three financial creditors (home buyers) filed a petition against Magic Info Solutions Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petitioners booked apartments in the 'Godrej Summit' project developed by the corporate debtor in 2013. Allotment letters were issued, and apartment buyer agreements were executed. The agreed-upon possession period, including a grace period, expired in June/July 2017. The corporate debtor offered possession in October 2017, but the petitioners claim effective possession was not given. The petitioners issued a notice of termination in 2019 and sought a refund of the principal amount and compensation. The corporate debtor contended that the delay was beyond its control and that the termination was based on

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## Issues and analysis

### Issue 1: Whether the failure to hand over possession of the apartments within the agreed-upon timeframe …

**Ratio:** Failure of the Real Estate Developers (CD) in not handing over the possession of the

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**Reasoning:** The Tribunal reasoned that the essence of the agreement was the timely handover of

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**Interpretation:** Section 3(12) of the IBC defines 'default' broadly to include the failure to

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**Application:** The Tribunal applied this principle to the facts of the case, noting that the

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## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** Pooja K…
- **Respondents:** Magic Info…

## Timeline

- **2013-01-01 — Apartment B…**: The three financial creditors booked individual apartments in the 'Godrej Summit' project…
- **2013-05-13 — Apartment Buyer…**: Apartment buyer agreements were entered into between the FC and CD dated 13.5.2013,…

## 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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