# In the matter of SVS Buildcon Private Limited C.P. No. IB-1869(ND)-2019

> NCLT judgment dated 2019-12-17. Citation: TCN-2019-NCLT-00128. The case involves an application filed by Sh. Charu Chandra Nirmal, the financial creditor,…

- **Court:** NCLT
- **Order date:** 17 Dec 2019
- **Citation:** TCN-2019-NCLT-00128
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/svs-buildcon-private-limited-cp-no-ib-1869nd-2019-20abf2fd

## Summary

### Background

The case involves an application filed by Sh. Charu Chandra Nirmal, the financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/S SVS Buildcon Private Limited, the corporate debtor. The financial creditor was allotted a unit in the 'UNIHOMES' project by the corporate debtor. Possession was delayed, leading to the financial creditor seeking resolution under the IBC. The corporate debtor raised objections, citing a stay by the Supreme Court in related proceedings and arguing that there was no disbursement of debt by the financial creditor.

## Facts

Sh. Charu Chandra Nirmal, the financial creditor, was allotted a unit in the 'UNIHOMES' project by M/S SVS Buildcon Private Limited, the corporate debtor. The allotment was made vide an allotment letter dated 04.01.2016 and an Apartment Buyer's Agreement dated 09.06.2016. Possession was to be delivered by 04.01.2018. The financial creditor was previously employed as a 'law officer' at M/s MNT Infratech Pvt. Ltd., a group company of the corporate debtor, and was owed Rs. 20,15,160/- in pending salaries. A tripartite settlement agreement was entered into on 04.01.2016, wherein the corporate debtor agreed to allot an apartment to the financial creditor against the pending salary dues, with a balance of Rs. 50,000/- payable by the financial creditor. The corporate debtor

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## Issues and analysis

### Issue 1: Whether the applicant, being a home buyer, falls within the definition of a 'Financial Creditor' …

**Ratio:** The Hon'ble Supreme Court has settled the proposition of law that allottees/home buyers

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**Reasoning:** The tribunal relied on the Supreme Court's interpretation of Section 5(8)(f) of the IBC,

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**Interpretation:** Section 5(8)(f) of the IBC defines 'financial debt' to include any amount

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**Application:** The applicant, being a home buyer who had disbursed money to the corporate

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## Parties

- **Judges:** (Dr.) P.S.N…; V.K. SUB…
- **Appellants:** Sh. Charu Chandra…
- **Respondents:** M/S SVS Buildcon…

## Timeline

- **2016-01-04 — Allotment…**: Corporate-Debtor issued Allotment…
- **2016-01-04 — Tripartite Settlement…**: A tripartite settlement agreement was entered amongst the Financial-creditor, the…

## 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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