# In the matter of Vasundhara Nirman Unnayan Private Limited C.P. (IB) No. 1679-KB-2018

> NCLT judgment dated 2019-11-01. Citation: TCN-2019-NCLT-00745. This case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 1 Nov 2019
- **Citation:** TCN-2019-NCLT-00745
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vasundhara-nirman-unnayan-private-limited-cp-ib-no-1679-kb-2018-23544d9a

## Summary

### Background

This case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Navita Rani Gupta and Avishek Paul Chowdhury (Financial Creditors) against Vasundhara Nirman Unnayan Private Limited (Corporate Debtor). The Financial Creditors had booked flats with the Corporate Debtor and made payments, but possession was not handed over despite the agreed timelines. The Corporate Debtor argued that the petition was not maintainable and that any delay was due to the developer, Mounthill Realty Private Limited, and that the Financial Creditors had delayed payments. The Financial Creditors denied these allegations and sought initiation of the Corporate Insolvency Resolution Process (CIRP).

## Facts

Navita Rani Gupta and Avishek Paul Chowdhury, the applicants, are financial creditors who booked flats with Vasundhara Nirman Unnayan Private Limited, the corporate debtor. They entered into agreements dated May 25, 2013, and March 7, 2013, respectively. The applicants made payments to the corporate debtor, totaling Rs. 2,06,180/- and Rs. 3,00,000/- respectively, as per their agreements. The agreements stipulated that possession of the flats should be handed over by June 2016, with a possible extension of 6 months, potentially up to 12 months. However, possession was not handed over even after three years from the promised date. The financial creditors sent emails and legal letters to the corporate debtor demanding completion and possession of the flats or a refund of

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## Issues and analysis

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

**Ratio:** The ratio is based on the interpretation of Section 7 of the IBC, which allows a

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**Reasoning:** The court reasoned that the Financial Creditors had made payments to the Corporate Debtor

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**Interpretation:** The court interpreted Section 7 of the IBC to mean that a financial creditor

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**Application:** The court applied the ratio and reasoning to the facts of the case, finding

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Navita Rani…
- **Respondents:** VASUNDHARA NIRMAN…; Vasundhara…

## Timeline

- **2013-05-25 — Agreement…**: Agreement executed between Applicant No. 1 (Navita Rani Gupta) and Vasundhara Nirman…
- **2013-03-07 — Agreement…**: Agreement executed between Applicant No. 2 (Avishek Paul Chowdhury) and Vasundhara Nirman…

## 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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