# In the matter of Praxis Developers India Pvt. Ltd. CP (IB) No.74-Chd-Hry-2018

> NCLT judgment dated 2018-07-06. Citation: TCN-2018-NCLT-01187. The case involves a petition filed by Mr. Sandeep Bidani, a financial creditor, under Section 7…

- **Court:** NCLT
- **Order date:** 6 Jul 2018
- **Citation:** TCN-2018-NCLT-01187
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/praxis-developers-india-pvt-ltd-cp-ib-no74-chd-hry-2018-5dd73418

## Summary

### Background

The case involves a petition filed by Mr. Sandeep Bidani, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the insolvency resolution process against Praxis Developers India Pvt. Ltd, the respondent-corporate debtor, due to default in payment of debt. The petitioner invested in the respondent's 'Holiday Farms' project and later in farm land, with agreements for assured returns. The corporate debtor defaulted on payments after 01.07.2016.

## Facts

Mr. Sandeep Bidani, the petitioner, invested in Praxis Developers India Pvt. Ltd.'s 'Holiday Farms' project, specifically in a farm house (Investment No. 1). He invested in farm house bearing No. J-07 Block No. J. The corporate debtor assured a return of ₹ 51,023 for 24 months. The petitioner relied on receipts from December 2013 and January 2014, showing deposits of ₹20,00,000, ₹5,00,000, and ₹5,10,000. The corporate debtor issued an allotment letter dated 20.02.2014. The petitioner made further payments of ₹13,24,795 on 10.03.2014 and ₹4,00,000 on 07.06.2014. The corporate debtor again approached the petitioner for investment in farm land (Investment No. 2). The petitioner agreed to purchase farm land bearing Farm No. H-09, Block No. H. The corporate debtor agreed to

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## Issues and analysis

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

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

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**Reasoning:** The court observed that the petitioner had filed the application in the prescribed format

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**Interpretation:** Section 7 provides the mechanism for financial creditors to trigger the

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**Application:** The court found that the petitioner had met the requirements of Section 7, as

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Sandeep B…
- **Respondents:** Praxis Developers…

## Timeline

- **2013-12-01 — Receipts of December…**: Receipts showing deposits made by the…
- **2013-12-04 — Receipt dated 0…**: Receipt showing deposit made by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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