# In the matter of Value Infraestate India Pvt. Ltd. (IB)-1491(ND)2019

> NCLT judgment dated 2020-01-30. Citation: TCN-2020-NCLT-02135. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 30 Jan 2020
- **Citation:** TCN-2020-NCLT-02135
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/value-infraestate-india-pvt-ltd-ib-1491nd2019-ce6babe3

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Akshay Kr. Soni (Financial Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Value Infraestate India Pvt Ltd. (Corporate Debtor). The Financial Creditor claimed default on a debt related to the purchase of three flats in a group housing project. The Corporate Debtor failed to make payments despite repeated demands, and post-dated cheques issued for the repayment were dishonored due to 'Account closed'. The Greater Noida Authority cancelled the land allotment for the project due to non-payment of dues and other defaults.

## Facts

Akshay Kr. Soni (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s Value Infraestate India Pvt Ltd (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process. The Financial Creditor had agreed to purchase three flats in the 'SKY WALKS GNW' project developed by the Corporate Debtor and paid Rs. 50,00,000 in installments. An Allotment Letter was issued, and an Agreement to Sell was executed on 02.02.2015. The Corporate Debtor issued post-dated cheques totaling Rs. 1,30,00,000 (Rs.40,00,000 dated 02.06.2015, Rs.40,00,000 dated 02.10.2015, and Rs. 50,00,000 dated 02.10.2015) for repurchase of the flats, but these cheques were dishonored due to 'Account closed'. The total debt including principal

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has established a default on the part of the Corporate Debtor in …

**Ratio:** Section 7(5) of the IBC allows for the admission of a petition if a default has occurred

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**Reasoning:** The court found that the Financial Creditor presented sufficient evidence, including the

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**Interpretation:** Section 7 of the IBC provides the framework for initiating the CIRP upon the

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**Application:** The court applied the ratio to the facts, noting that the dishonored cheques

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## Parties

- **Judges:** Ina Mal…; Shri. L. N.…
- **Appellants:** Akshay Kr…
- **Respondents:** Value Infraestate…

## Timeline

- **2012-12-10 — Checklist issued for…**: Checklist issued for executing…
- **2012-12-14 — Lease deed e…**: Lease deed executed for…

## 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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