# In the matter of Shivam Parivar Developers Private Limited C.P. (IB) No. 702-NCLT-MB-2019

> NCLT judgment dated 2019-12-13. Citation: TCN-2019-NCLT-00186. The case involves an application filed by Mr. Nipun Thakkar (sole proprietor of M/s Ami…

- **Court:** NCLT
- **Order date:** 13 Dec 2019
- **Citation:** TCN-2019-NCLT-00186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shivam-parivar-developers-private-limited-cp-ib-no-702-nclt-mb-2019-5a61f48e

## Summary

### Background

The case involves an application filed by Mr. Nipun Thakkar (sole proprietor of M/s Ami Corporation) under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Shivam Parivar Developers Private Limited, seeking to initiate Corporate Insolvency Resolution Process (CIRP). The applicant claimed a default of ₹7,44,80,000/- including interest at 12% p.a. as on 31.12.2018. The applicant had advanced ₹3,74,38,800/- between 2009-2010 for a joint venture, which did not materialize. The corporate debtor made a part payment of ₹1,50,00,000/- on 28.08.2010 and later issued a Letter of Understanding on 31.12.2017 to pay the balance. The corporate debtor failed to adhere to the agreements and pay the debt amount before 31.12.2018.

## Facts

Mr. Nipun Thakkar, the financial creditor, advanced ₹3,74,38,800 to Shivam Parivar Developers Private Limited, the corporate debtor, between 2009 and 2010, anticipating a joint venture. This venture did not materialize. The corporate debtor made a partial payment of ₹1,50,00,000 on August 28, 2010. Subsequently, on December 31, 2017, the corporate debtor issued a Letter of Understanding, confirming and undertaking to pay the balance amount of ₹6,65,00,000, inclusive of interest, within 180 days. The corporate debtor failed to repay the debt within the stipulated time. On July 4, 2018, the applicant demanded payment of ₹6,65,00,000 plus interest. A Supplemental Letter of Understanding, dated July 16, 2018, extended the payment date by six months to December 31, 2018,

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** Section 25(3) of the Indian Contract Act, 1872 states that a promise to pay a debt barred

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**Reasoning:** The court reasoned that even if the original claim was time-barred, the subsequent

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**Interpretation:** The interpretation of Section 25(3) allows for the revival of a time-barred

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**Application:** In this case, the Letters of Understanding and the Board Resolution served as

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## Parties

- **Judges:** RAJESH S…; Bhaskara Pantula…
- **Appellants:** Mr Nipun T…
- **Respondents:** ShivamParivar…; SHIVAM PARIVAR…

## Timeline

- **2009-01-01 — Debt Adv…**: Mr. Nipun Thakkar advanced ₹3,74,38,800 to Shivam Parivar Developers Private Limited…
- **2010-08-28 — Partial P…**: Shivam Parivar Developers Private Limited made a partial payment of ₹1,50,00,000 to Mr.…

## 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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