# In the matter of Ansal Properties and Infrastructure Limited (IB)-330(ND)-2021

> NCLT judgment dated 2022-11-16. Citation: TCN-2022-NCLT-00438. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Nov 2022
- **Citation:** TCN-2022-NCLT-00438
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ansal-properties-and-infrastructure-limited-ib-330nd-2021-79720c43

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Bibhuti Bhushan Biswas and 125 others, collectively referred to as 'Applicants/Financial Creditors', against M/s. Ansal Properties and Infrastructure Limited, the 'Respondent'. The applicants, who are homebuyers, sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the respondent due to defaults in handing over possession of purchased flats/villas in a project named 'The Fernhill'. The respondent opposed the application, claiming delays were due to factors beyond their control and that they had a resolution plan. The applicants argued that the respondent had not handed over possession or refunded payments and had diverted funds.

## Facts

Bibhuti Bhushan Biswas and 125 others, acting as 'Applicants/Financial Creditors', filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Ansal Properties and Infrastructure Limited, the 'Respondent'. The applicants are homebuyers who purchased flats/villas in the respondent's project, 'The Fernhill', located in Sector-91, Gurgaon, Haryana. The respondent, incorporated on 30.06.1967, allegedly failed to provide timely physical possession of the units, despite assurances. The applicants executed builder-buyer agreements, with terms and conditions identical except for the sales consideration. The applicants claimed the respondent diverted funds to Samyak Projects &

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## Issues and analysis

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

**Ratio:** The legal principle applied is that if a default has occurred, and the application is

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**Reasoning:** The court reasoned that the applicants had successfully proven the existence of a debt

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**Interpretation:** The interpretation of Section 7 of the IBC is that once a default is

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** SH. BACHU VENKAT…; SH. L. N.…
- **Appellants:** Bibhuti Bhushan…
- **Respondents:** M/s. Ansal…

## Timeline

- **1967-06-30 — Incorporation of…**: M/s. Ansal Properties and Infrastructure Limited was incorporated under the Companies…
- **2011-01-06 — MoU Date…**: Date of the MoU between the Respondent and Samyak Projects & Infrastructure Limited…

## 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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