# In the matter of Nucleus Premium Properties Private Limited C.P.(IB)-01-KOB-2021

> NCLT judgment dated 2021-11-18. Citation: TCN-2021-NCLT-00454. The case involves an application filed by financial creditors under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 18 Nov 2021
- **Citation:** TCN-2021-NCLT-00454
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nucleus-premium-properties-private-limited-cpib-01-kob-2021-60b766d5

## Summary

### Background

The case involves an application filed by financial creditors under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Nucleus Premium Properties Private Limited due to a default of ₹2,13,32,729.20. The financial creditors had approached the corporate debtor for the purchase of villas, which included the purchase of plots and construction of villas. While the purchase of plots was completed, the construction of villas was not. The corporate debtor cited reasons such as floods and COVID-19 lockdowns for the delay. The corporate debtor also argued that the applicants are operational creditors and that the application was filed with malicious intent.

## Facts

The Financial Creditors approached Nucleus Premium Properties Private Limited for purchasing villas, which involved purchasing plots and constructing villas. The plot purchases were completed, but the villa construction was not. Construction agreements were executed. The corporate debtor was required to complete and handover possession of the villas within 18 months from the construction agreement date or the building plan approval date. The corporate debtor did not obtain the building permit from Thrikkakara Municipality on the dates of the construction agreements. The corporate debtor claimed to be an MSME with other ongoing projects. The corporate debtor stated that the applicants have purchased the plots from the land owners and have registered the deed of

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## Issues and analysis

### Issue 1: Whether the application filed by the financial creditors under Section 7 of the Insolvency and …

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

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**Reasoning:** The court considered the arguments presented by both parties, including the corporate

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**Interpretation:** Section 7 of the IBC is interpreted to allow financial creditors to initiate

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**Application:** The court found that the applicants are financial creditors, there was a

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## Parties

- **Judges:** RAJESH S…; Ashok Kumar…
- **Appellants:** Anoop…
- **Respondents:** Nucleus Premium…

## Timeline

- **2015-09-10 — Construction Agreement…**: Date of one of the construction agreements between the financial creditors and the…
- **2016-03-21 — Construction Agreement…**: Date of one of the construction agreements between the financial creditors and the…

## 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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