# In the matter of Bulland Realtors Private Limited

> NCLT judgment dated 2023-07-31. Citation: TCN-2023-NCLT-02266. Nimble Credit Cooperative Society Ltd filed an application under Section 7 of the Insolvency…

- **Court:** NCLT
- **Order date:** 31 Jul 2023
- **Citation:** TCN-2023-NCLT-02266
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bulland-realtors-private-limited-f5b0772f

## Summary

### Background

Nimble Credit Cooperative Society Ltd filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Bulland Realtors Private Limited, citing a total financial default of Rs. 6,02,00,000, which includes a principal amount of Rs. 2,98,95,000 and interest of Rs. 3,03,05,000 calculated at 2% per month from 01.06.2018 to 31.03.2023. The Corporate Debtor was incorporated on 06/11/2013 and is engaged in the business of building completion. The Adjudicating Authority noted that the Corporate Debtor had earlier made an offer of settlement and entered into an MoU with the Financial Creditor in 2018 but subsequently defaulted on the payment.

## Facts

Nimble Credit Cooperative Society Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bulland Realtors Private Limited (Corporate Debtor). The Corporate Debtor was incorporated on 06/11/2013 and is in the business of building completion. The total financial default amounted to Rs. 6,02,00,000, comprising a principal amount of Rs. 2,98,95,000 and interest of Rs. 3,03,05,000 calculated at 2% per month from 01.06.2018 to 31.03.2023. The application was filed on 25.04.2023. The Corporate Debtor had previously made a settlement offer and entered into a Memorandum of Understanding (MoU) with the Financial Creditor in 2018 but subsequently defaulted on

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The Adjudicating Authority found that the application was complete in all respects and

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues by

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**Application:** The Adjudicating Authority applied the provisions of Section 7 to the facts of

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## Parties

- **Judges:** Ramalingam…; Sh. Avinash K.…
- **Appellants:** Nimble Credit…
- **Respondents:** Bulland Realtors…

## Timeline

- **2013-11-06 — Incorporation of…**: Bulland Realtors Private…
- **2018-01-01 — Settlement…**: Corporate Debtor made an offer of settlement and entered into an MoU with the Financial…

## 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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