# In the matter of Today Homes Noida India Limited C.P. NO. IB-923(PB)-2018

> NCLT judgment dated 2019-08-20. Citation: TCN-2019-NCLT-01898. The application was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, read with…

- **Court:** NCLT
- **Order date:** 20 Aug 2019
- **Citation:** TCN-2019-NCLT-01898
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/today-homes-noida-india-limited-cp-no-ib-923pb-2018-69671ada

## Summary

### Background

The application was filed under Section 7 of the Insolvency & Bankruptcy Code, 2016, read with rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by the Financial Creditors (home buyers) to trigger Corporate Insolvency Resolution Process in respect of M/s Today Homes Noida Private Limited. The Corporate Debtor was incorporated on 11.09.2009. The financial creditors entered into a Flat Buyers Agreement dated 29.03.2012 with the corporate debtor and had paid almost 90% of the purchase value of the flats. The Corporate Debtor was obliged to deliver possession within 30 months with a grace period of 120 days, failing which compensation was to be paid. The Financial Creditors submitted that the possession had to be handed over

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## Facts

The Financial Creditors, who are also home buyers, entered into a Flat Buyers Agreement with Today Homes Noida India Limited (Corporate Debtor) on 29.03.2012 for the Ridge Residency housing project in Sector 135, Noida. They paid almost 90% of the purchase value of the flats, amounting to Rs. 4,18,23,303/-. As per the agreement, the Corporate Debtor was obliged to deliver possession within 30 months with a grace period of 120 days. The possession was to be handed over latest by the year 2016. The Corporate Debtor failed to deliver possession of the flats and did not refund the amount paid by the Financial Creditors. The Financial Creditors repeatedly requested the Corporate Debtor to deliver possession, but the Corporate Debtor failed to do so. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditors under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016, allows a financial creditor to

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**Reasoning:** The Adjudicating Authority found that the Financial Creditors had entered into a Flat

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**Interpretation:** The term 'financial debt' includes amounts raised from allottees under real

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**Application:** The Financial Creditors, being home buyers, are considered financial creditors,

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** Sunil H…
- **Respondents:** Today Homes Noida…

## Timeline

- **2009-09-11 — Incorporation of…**: M/s Today Homes Noida Private…
- **2012-03-29 — Flat Buyers A…**: Financial creditors entered into a Flat…

## 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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