# In the matter of MSA Developers Pvt. Limited C.P. No. IB-806(PB)-2019

> NCLT judgment dated 2019-10-11. Citation: TCN-2019-NCLT-01029. Ravinder Aggarwal and others, claiming to be Financial Creditors, filed an application under…

- **Court:** NCLT
- **Order date:** 11 Oct 2019
- **Citation:** TCN-2019-NCLT-01029
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/msa-developers-pvt-limited-cp-no-ib-806pb-2019-e31be294

## Summary

### Background

Ravinder Aggarwal and others, claiming to be Financial Creditors, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against MSA Developers Private Limited, the Corporate Debtor. The petitioners are allottees of a real estate project and are considered financial creditors. The Corporate Debtor was to complete construction and hand over possession within 36 months with a 6-month grace period. The petitioners were also offered a 'buy back' scheme. The petitioners alleged delays and non-payment of compensation.

## Facts

Ravinder Aggarwal and nine others, claiming to be financial creditors, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against MSA Developers Private Limited. The petitioners are allottees of a real estate project, MSA Circuit Heights, and are considered financial creditors. The Corporate Debtor was incorporated on 24.05.2013. The petitioners entered into builder buyer agreements between 2013 and 2015 for residential flats in the project. The Corporate Debtor was to complete construction and hand over possession within 36 months with a 6-month grace period, according to clause 19 of the allotment letters/builder buyer agreements. The petitioners paid a total of Rs.

…

## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiation …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

…

**Reasoning:** The court found that the petitioners, as financial creditors, had demonstrated a default

…

**Interpretation:** Section 7 of the IBC provides a mechanism for financial creditors to initiate

…

**Application:** The court applied Section 7 of the IBC to the facts of the case, finding that

…

## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Ravinder Ag…
- **Respondents:** MSA Developers…
- **Advocates:** Abhay Prata…; Onkar…

## Timeline

- **2013-05-24 — Incorporation of…**: MSA Developers Private…
- **2013-01-01 — Builder Buyer A…**: Between 2013-2015, the petitioners entered into different builder buyer agreements with…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/msa-developers-pvt-limited-cp-no-ib-806pb-2019-e31be294