# In the matter of U. P. Infraestate Private Limited Company Petition (IB)No.05-ALD-2018

> NCLT judgment dated 2018-12-13. Citation: TCN-2018-NCLT-00087. The case involves a company petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 13 Dec 2018
- **Citation:** TCN-2018-NCLT-00087
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/u-p-infraestate-private-limited-company-petition-ibno05-ald-2018-10be8a1d

## Summary

### Background

The case involves a company petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The petitioner, Dr. Rajinder Mohan Bedi & Ors., initiated Corporate Insolvency Resolution Process (CIRP) against the respondent company, M/s U.P Infraestate Private Limited, alleging default on financial debt. The respondent is engaged in the development of Hi-Tech Township in Greater Noida under the project name "Development Area-1". The petitioner had paid Rs. 55,00,000/- to the respondent for booking residential flats, with an assurance of refund after eighteen months along with interest. A buy-back agreement dated 16.12.2014 was executed,

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## Facts

Dr. Rajinder Mohan Bedi & Ors. (the Petitioner) filed a company petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s U.P Infraestate Private Limited (the Respondent/Corporate Debtor). The Respondent is engaged in the development of a Hi-Tech Township in Greater Noida. The Petitioner paid Rs. 55,00,000/- to the Respondent for booking residential flats, with a promise of refund after 18 months along with interest. A buy-back agreement dated 16.12.2014 was executed, stating that after 18 months, the Respondent would pay Rs. 55 Lakhs as full and final settlement and issued 18 post-dated cheques for the assured interest. The Petitioner deposited 3 out of 5 un-encashed cheques issued by the Respondent on 31.05.2016, which were returned by the

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## Issues and analysis

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

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

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**Reasoning:** The court was satisfied that the application under Section 7 was complete and that the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** In this case, the petitioner, as a financial creditor, demonstrated that the

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## Parties

- **Judges:** BIKKI RAVEENDRA…; Saroj Ra…
- **Appellants:** Rajinder Mohan…
- **Respondents:** M/s U.P Infraestat…

## Timeline

- **2009-10-08 — Incorporation of…**: M/s U.P Infraestate Private…
- **2014-12-16 — Buy-Back Ag…**: A buy-back agreement was executed…

## 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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