# In the matter of Piyush Shelters India Pvt. Ltd. Company Petition (IB)No.322-ALD-2018

> NCLT judgment dated 2018-12-03. Citation: TCN-2018-NCLT-00222. The case involves a company petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 3 Dec 2018
- **Citation:** TCN-2018-NCLT-00222
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/piyush-shelters-india-pvt-ltd-company-petition-ibno322-ald-2018-e9a5d9fe

## Summary

### Background

The case involves a company petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rule, 2016. The petitioners, Mrs. Anita Nirula & Ors., are financial creditors who initiated Corporate Insolvency Resolution Process (CIRP) against the respondent/corporate debtor, M/s Piyush Shelters India Pvt Ltd. The petitioners had applied for allotment of units in the respondent's project and made payments, but the respondent failed to deliver possession and defaulted on assured returns.

## Facts

Mrs. Anita Nirula & Ors. filed a company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Piyush Shelters India Pvt Ltd. The petitioners applied for allotment of units in the respondent's project 'Piyush Global I' and were provisionally allotted areas of 1000 sq. ft. and 1750 sq. ft. for a total sale consideration of Rs. 26,54,756/- and Rs. 46,85,625/- respectively. The petitioners paid Rs. 23,99,756/- and Rs. 42,39,375/- on 29.2.2012 and 14.6.2012 respectively. The corporate debtor acknowledged the receipt of these amounts through registered agreements/MOU dated 15.3.2012 and 11.6.2016. The MOU had an assured return clause, with the corporate debtor obligated to pay Rs. 48,450/- and Rs. 84,788/- per month from 14.3.2012 and

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## Issues and analysis

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

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4(2) of the

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**Reasoning:** The court observed that the application was filed in the prescribed format and was

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**Interpretation:** Section 7 provides the mechanism for initiating the Corporate Insolvency

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**Application:** The court applied Section 7 and Rule 4(2) to the facts of the case, finding

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## Parties

- **Judges:** SH. BIKKI…; Ms Saroj R…
- **Appellants:** ANITA N…
- **Respondents:** M/S PIYUSH…

## Timeline

- **2006-06-05 — Incorporation of…**: M/s Piyush Shelters India…
- **2012-02-29 — Payment by Applicant…**: Applicant No. 1 paid Rs. 23,99,756/-…

## 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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