# In the matter of Apple Spire India LLP

> NCLT judgment dated 2023-07-20. Citation: TCN-2023-NCLT-02411. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 20 Jul 2023
- **Citation:** TCN-2023-NCLT-02411
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/apple-spire-india-llp-a8f05963

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Mr. Nagappaiya Maiya and 7 others (Financial Creditors/Homebuyers) against M/s. Apple Spire India LLP (Corporate Debtor) for defaulting on a debt of Rs. 15,43,59,238/-. The Financial Creditors had purchased apartments in the Corporate Debtor's 'Birla Apple Spire' project in Bengaluru between 2015 and 2017, with promised delivery dates in 2017, later extended to 2018. The Corporate Debtor failed to complete the project, obtain occupancy certificates, and hand over possession within the stipulated time, leading to the default. The Corporate Debtor contended that the homebuyers defaulted on payments, the project was delayed due to force majeure, and the matter should be

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## Facts

Mr. Nagappaiya Maiya and 7 other homebuyers (Financial Creditors) filed a petition against M/s. Apple Spire India LLP (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditors had purchased apartments in the Corporate Debtor's 'Birla Apple Spire' project in Bengaluru between 2015 and 2017, with promised delivery dates in 2017, later extended to 2018. The Corporate Debtor defaulted on a debt of Rs. 15,43,59,238/- inclusive of interest. The Corporate Debtor failed to complete the project, obtain occupancy certificates, and hand over possession within the stipulated time. The Corporate Debtor registered the project with Karnataka RERA, but the registration expired on 30.09.2019 and was not extended. The Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable given the number of allottees in …

**Ratio:** Section 7 of the IBC requires a minimum number of allottees to jointly file an

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**Reasoning:** The court considered the Corporate Debtor's claim that there were 246 allottees,

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**Interpretation:** The court interpreted Section 7 of the IBC in conjunction with the RERA Act to

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**Application:** The court applied the ratio to the facts of the case, finding that the number

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## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Nagappaiya…
- **Respondents:** M/s. Apple Spire…

## Timeline

- **2015-01-01 — Apartment P…**: Financial Creditors purchased apartments in the Corporate Debtor's project between 2015…
- **2017-03-01 — Original Deliv…**: Original promised delivery…

## 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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