# In the matter of Aspirations Homes Pvt. Ltd.

> NCLT judgment dated 2023-10-10. Citation: TCN-2023-NCLT-01312. 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-01312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aspirations-homes-pvt-ltd-8e68bd71

## 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 of Rs. 3,58,82,555/- as of August 2022, including interest, with the principal amount being Rs. 3,03,82,568/- as of July 2021. 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 applicants alleged delay in handing over possession of the apartment, which was supposed to be

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## 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 claimed that they had paid the amount as per clause 7.1 of the agreement, which stipulated that the corporate debtor should complete the project and handover possession by June 30, 2021. The applicants alleged that the corporate debtor delayed handing over possession, citing the COVID-19 pandemic as the reason. The applicants claimed a default of Rs. 3,58,82,555/- as of August 2022, including interest. The corporate debtor offered to refund

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## Issues and analysis

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

**Ratio:** The application under Section 7 of the IBC is maintainable only if the applicant

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**Reasoning:** The court reasoned that the applicants had not made out a case for initiating CIRP under

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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 had not demonstrated a

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## Parties

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

## Timeline

- **2010-09-24 — Incorporation of…**: 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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