# In the matter of CHD Developers Ltd. (IB)-1775(PB)-2018, (IB)-1081(PB)-2020 & (IBPP)-02(PB)-2022

> NCLT judgment dated 2022-09-05. Citation: TCN-2022-NCLT-01167. The case involves multiple petitions filed under the Insolvency and Bankruptcy Code (IBC)…

- **Court:** NCLT
- **Order date:** 5 Sept 2022
- **Citation:** TCN-2022-NCLT-01167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/chd-developers-ltd-ib-1775pb-2018-ib-1081pb-2020-ibpp-02pb-2022-885a73c5

## Summary

### Background

The case involves multiple petitions filed under the Insolvency and Bankruptcy Code (IBC) against CHD Developers Ltd. These include a pre-packaged insolvency resolution process (PPIRP) application (IBPP-02(PB)/2022) under Section 54C of IBC, and earlier Section 7 petitions filed by real estate allottees (home buyers) and operational creditors. The primary issue is whether the PPIRP application should take precedence over the pending Section 7 petitions, particularly in light of Section 11A of the IBC, which addresses the priority of applications. The corporate debtor (CHD Developers Ltd.) is facing insolvency proceedings due to defaults in completing real estate projects and delivering units to allottees. Several hearings and adjournments have occurred, with arguments

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## Facts

CHD Developers Ltd. is a corporate debtor that proposed several real estate projects, both commercial and residential. A large number of home buyers invested in these projects and paid money to the CD. The CD defaulted in completing the projects and delivering the units to the allottees. Consequently, several real estate allottees filed a Section 7 petition (IB-1081(PB)/2020) on 21.10.2020. Another Section 7 petition (IB-1775(PB)/2018) was filed by Mr. Shailendra Kumar Agarwal, another real estate allottee. While these petitions were pending, the IBC (Amendment) Ordinance dated 04.04.2021 came into effect, introducing Chapter III-A and PPIRP. Subsequently, the CD filed a PPIRP application (IBPP-02(PB)/2022) under Section 54C of the IBC. The land for the project belongs

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## Issues and analysis

### Issue 1: Whether the pre-packaged insolvency resolution process (PPIRP) application under Chapter III-A of …

**Ratio:** Section 11A(4) of the IBC states that the provisions of Section 11A will not apply where

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**Reasoning:** The court reasoned that the language of Section 11A(4) is clear and unambiguous. If the

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**Interpretation:** Section 11A provides a mechanism for prioritizing applications under Section

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**Application:** Since the Section 7 applications were filed before 04.04.2021, Section 11A(4)

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Shailendra Kumar…
- **Respondents:** CHD Developers…; M/s. CHD Developer…

## Timeline

- **2018-01-01 — Section 7 Petition by…**: Mr. Shailendra Kumar Agarwal, a real estate allottee, filed a Section 7 petition…
- **2020-10-21 — Section 7 Petition by…**: Mr. Rajeev Kumra & Ors. filed a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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