# In the matter of R.S. Stones Private Limited Company Petition No. (IB)-1788 (PB)-2018

> NCLT judgment dated 2019-08-02. Citation: TCN-2019-NCLT-02137. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 2 Aug 2019
- **Citation:** TCN-2019-NCLT-02137
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rs-stones-private-limited-company-petition-no-ib-1788-pb-2018-9b8a2f6d

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Mrs. Sarika Somvanshi, Mrs. Rekha Chauhan, and Mr. Dhani Ram, who are applicant financial creditors, against M/s R. S. Stones Private Limited, the respondent corporate debtor. The financial creditors jointly filed the application seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The applicants, being home buyers, had entered into agreements to purchase units in the 'Fort View Residency' project. They alleged that the corporate debtor failed to provide possession of the flats within the stipulated time, despite the financial creditors having paid the installments. The corporate debtor also failed to repay the total

…

## Facts

Mrs. Sarika Somvanshi, Mrs. Rekha Chauhan, and Mr. Dhani Ram, the applicants, are financial creditors who jointly filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s R. S. Stones Private Limited, the corporate debtor. The applicants are home buyers who had entered into agreements to purchase flats in the 'Fort View Residency' project. Each applicant entered into identical agreements to sell with the corporate debtor. Mrs. Sarika Somvanshi, Mrs. Rekha Chauhan, and Mr. Dhani Ram booked flats with the corporate debtor on 08.07.2015, 08.07.2015, and 07.07.2015, respectively. The applicants paid installments towards the purchase of the flats, partly from their own savings and partly by availing loan facilities. The corporate debtor

…

## Issues and analysis

### Issue 1: Whether the applicant home buyers qualify as financial creditors under Section 5(8)(f) of the …

**Ratio:** The ratio is based on the interpretation of Section 5(7) and 5(8) of the IBC, which

…

**Reasoning:** The court reasoned that the amendment to Section 5(8) and the Supreme Court's ruling have

…

**Interpretation:** The interpretation is that the IBC, as amended, and the Supreme Court's

…

**Application:** In this case, the applicants, being home buyers who advanced money to the

…

## Parties

- **Judges:** CHIEF JUSTICE…; S. K. MOHAPATRA,…
- **Appellants:** Sarika Som…
- **Respondents:** M/s R. S. Stones…

## Timeline

- **2015-07-07 — Agreement t…**: Mr. Dhani Ram entered into an Agreement…
- **2015-08-08 — Agreement t…**: Mrs. Rekha Chauhan entered into an…

## 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)

---

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/rs-stones-private-limited-company-petition-no-ib-1788-pb-2018-9b8a2f6d