# In the matter of Aspirations Homes Pvt. Ltd.

> NCLT judgment dated 2023-10-10. Citation: TCN-2023-NCLT-01320. Prakash Beria and Radhika Beria, as financial creditors, filed an application under Section 7…

- **Court:** NCLT
- **Order date:** 10 Oct 2023
- **Citation:** TCN-2023-NCLT-01320
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aspirations-homes-pvt-ltd-78980b95

## Summary

### Background

Prakash Beria and Radhika Beria, as financial creditors, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Aspirations Homes Pvt. Ltd., the corporate debtor, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditors claimed a default amount of Rs. 3,58,82,555/- as of August 2022, including interest. The corporate debtor was incorporated on September 24, 2010. The applicants had entered into an 'Agreement for Sale' with the corporate debtor on November 28, 2018, for the purchase of an apartment in the 'Aspirations Aloft' project. The project faced delays due to the COVID-19 pandemic, and the applicants were aggrieved by the delay in handing over possession.

## Facts

Prakash Beria and Radhika Beria, the applicants, are financial creditors who entered into an 'Agreement for Sale' with Aspirations Homes Pvt. Ltd., the corporate debtor, on November 28, 2018, for an apartment in the 'Aspirations Aloft' project. The total consideration for the apartment was Rs. 3,36,70,000/- plus GST. The applicants claim that they paid the amount as per clause 7.1 of the agreement. The corporate debtor was required to complete the project and hand over possession by June 30, 2021. The project was delayed due to the COVID-19 pandemic. The applicants claim a default amount of Rs. 3,58,82,555/- as of August 2022, including interest. The corporate debtor offered to refund the principal amount with 14% interest from April 1, 2022, until the date 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 application is not maintainable if the debt amount falls below the threshold limit

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**Reasoning:** The court reasoned that the applicants had not terminated the 'Agreement for Sale' and

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a

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**Application:** In this case, the court found that the applicants were only entitled to

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Prakash…
- **Respondents:** Aspirations Homes…

## Timeline

- **2010-09-24 — Corporate Debtor…**: Aspirations Homes Pvt.…
- **2018-11-28 — Agreement f…**: Prakash Beria and Radhika Beria entered into an 'Agreement for Sale' with Aspirations…

## 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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