# In the matter of Sampark Land Developers Private Limited CP (IB) No. 887-KB-2020

> NCLT judgment dated 2021-04-30. Citation: TCN-2021-NCLT-02244. Sampark Land Developers Private Limited, along with its two group companies, launched a real…

- **Court:** NCLT
- **Order date:** 30 Apr 2021
- **Citation:** TCN-2021-NCLT-02244
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sampark-land-developers-private-limited-cp-ib-no-887-kb-2020-fe07e69a

## Summary

### Background

Sampark Land Developers Private Limited, along with its two group companies, launched a real estate project called 'Baruipur Bloomfield' in February 2011. Plot buyers made payments to the Corporate Applicant, who then distributed sums to the group companies. Internal problems arose when directors managing acquisition and development resigned in October 2015, causing project delays. Plot holders withheld payments, demanding refunds. The Corporate Applicant faced financial challenges and took loans from financial creditors, but could not complete the project. A Board Meeting was held on May 26, 2020, followed by an Extra-Ordinary General Meeting on June 18, 2020, where a Special Resolution was passed to file an application under Section 10 of the Insolvency and

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## Facts

Sampark Land Developers Private Limited (Corporate Applicant) launched a real estate project 'Baruipur Bloomfield' in February 2011 with two group companies. Plot buyers paid ₹36,67,00,275 to the Corporate Applicant, who distributed ₹13,40,26,588 to Sampark Land and Builders Private Limited and ₹49,00,91,816 to Suryodaya Realtors Private Limited. Two directors managing acquisition and development resigned in October 2015, causing project delays. Plot holders withheld payments, demanding refunds of ₹14,25,81,871. The Corporate Applicant took loans of ₹35,00,000 from Greenland Project and ₹15,00,000 from Toddlen Fashions Private Limited. The company purchased 146 bighas of land, with 120 registered and 26 unregistered. A sum of ₹50 lakh is due to financial creditors. The

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## Issues and analysis

### Issue 1: Whether the petition filed by the Corporate Applicant under Section 10 of the Insolvency and …

**Ratio:** Section 10 of the Insolvency and Bankruptcy Code, 2016 allows a corporate debtor to

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**Reasoning:** The Adjudicating Authority found that the petition made by the Corporate Applicant was

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**Interpretation:** Section 10 provides a mechanism for corporate debtors facing financial distress

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**Application:** The Corporate Applicant demonstrated its inability to meet its financial

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Sampark Land…

## Timeline

- **2011-02-01 — Incorporation of…**: The Corporate Applicant was…
- **2011-02-01 — Launch of Real Estate…**: The Corporate Applicant and its group companies launched the 'Baruipur Bloomfield'…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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