# In the matter of Shrinathji Business Ventures Private Limited CP No. (IB)- 161-7-JPR-2020

> NCLT judgment dated 2021-12-23. Citation: TCN-2021-NCLT-00043. The case involves an application filed by Arti Kanoongo and other allottees (financial…

- **Court:** NCLT
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-NCLT-00043
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shrinathji-business-ventures-private-limited-cp-no-ib-161-7-jpr-2020-3b64768f

## Summary

### Background

The case involves an application filed by Arti Kanoongo and other allottees (financial creditors) under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Shrinathji Business Venture Private Limited (corporate debtor). The applicants are allottees of a real estate project named 'Guman Eternity' developed by the respondent. The respondent is a private limited company incorporated on 03.12.2011. The respondent started a group housing project which is not registered with RERA. The allottees claim that the corporate debtor owes them a total of Rs. 3,95,00,000/- against the purchase of flats, and the total amount claimed with interest is Rs. 5,40,04,400/-. The financial creditors had entered into a

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## Facts

Arti Kanoongo and others, acting as financial creditors (allottees), filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shrinathji Business Venture Private Limited, the corporate debtor, due to a default in repayment. The applicants are allottees of the 'Guman Eternity' real estate project developed by the respondent, which is not registered with the Rajasthan Real Estate Regulatory Authority (RERA). The corporate debtor was incorporated on 03.12.2011. The total amount due to the allottees is Rs. 3,95,00,000/-, with a claimed amount of Rs. 5,40,04,400/- including interest at 18% per annum for the period 01.10.2018 to 15.10.2020. The financial creditors had entered into a

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## Issues and analysis

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

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

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**Reasoning:** The court considered the submissions of both parties and examined the documents on

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**Interpretation:** Section 7 of the IBC provides the mechanism for financial creditors to initiate

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**Application:** The court found that the application was complete and the occurrence of default

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** Arti Kan…
- **Respondents:** Shrinathji…

## Timeline

- **2011-12-03 — Incorporation of…**: Shrinathji Business Venture Private Limited…
- **2018-09-01 — MOU Dead…**: Corporate Debtor agreed to return advances received towards booking of units by the end…

## 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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