# In the matter of Pebble Bay Developers Private Limited C.P. (IB) No. 980-MB-2020

> NCLT judgment dated 2021-04-06. Citation: TCN-2021-NCLT-02455. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 6 Apr 2021
- **Citation:** TCN-2021-NCLT-02455
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pebble-bay-developers-private-limited-cp-ib-no-980-mb-2020-3b6eab1a

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against Pebble Bay Developers Private Limited, the Corporate Debtor, for allegedly defaulting on a financial debt of ₹. 7,23,98,459/-. Previously, the Petitioner, Bipin Vazirani, had filed a similar petition against the Corporate Debtor, which was later withdrawn following a settlement and execution of consent terms on 28/02/2019. The consent terms stipulated a payment schedule via post-dated cheques (PDCs). The Corporate Debtor repeatedly sought extensions and issued replacement cheques, which were not deposited. The Petitioner contended that the default occurred on 31/07/2019, while the Corporate

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## Facts

Bipin Vazirani, the Financial Creditor, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Pebble Bay Developers Private Limited, the Corporate Debtor, claiming a default of ₹. 7,23,98,459/-. Previously, a similar petition was filed and withdrawn after a settlement agreement with consent terms was reached on 28/02/2019. The consent terms involved a payment schedule using post-dated cheques (PDCs). The Corporate Debtor issued eight PDCs with dates ranging from 31/07/2019 to 31/01/2020. The Corporate Debtor repeatedly requested the Petitioner not to deposit the cheques, citing financial difficulties, and issued replacement cheques. The Petitioner, on the Corporate Debtor's request, did not deposit the original or replacement cheques.

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## Issues and analysis

### Issue 1: Whether the default occurred on 31/07/2019, as contended by the Petitioner, or on 31/03/2020, as …

**Ratio:** The date of default is determined by the terms of the agreement between the parties. When

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**Reasoning:** The court reasoned that since the Corporate Debtor issued fresh cheques, and the

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**Interpretation:** The interpretation of the consent terms is crucial in determining the date of

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**Application:** The court applied the ratio to the facts by noting that the Petitioner accepted

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## Parties

- **Judges:** Janab Mohammed…; V. Nallasen…
- **Appellants:** BIPIN VAZ…
- **Respondents:** Pebble Bay…

## Timeline

- **2019-02-28 — Settlement Ag…**: Parties entered into a…
- **2019-03-04 — Previous Petition…**: Tribunal dismissed the previous petition as withdrawn with liberty to file a fresh…

## 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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