# In the matter of Colorcity Homes Pvt. Ltd. CP No. (IB) 04-ALD-2020

> NCLT judgment dated 2023-03-02. Citation: TCN-2023-NCLT-04394. The application was filed on 2019-12-03 by Neon Vincom Pvt Ltd, the Financial Creditor, under…

- **Court:** NCLT
- **Order date:** 2 Mar 2023
- **Citation:** TCN-2023-NCLT-04394
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/colorcity-homes-pvt-ltd-cp-no-ib-04-ald-2020-bc906429

## Summary

### Background

The application was filed on 2019-12-03 by Neon Vincom Pvt Ltd, the Financial Creditor, under Section 7 of the Insolvency & Bankruptcy Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against Colorcity Homes Pvt Ltd, the Corporate Debtor. During the hearing on 2022-08-10, the Applicant's counsel requested to amend the application to include the date of default and file an affidavit. The compliance affidavit along with the amended application was filed on 2022-08-27.

## Facts

Neon Vincom Pvt Ltd, the Financial Creditor, filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, to initiate CIRP against Colorcity Homes Pvt Ltd, the Corporate Debtor. The Corporate Debtor had approached the Financial Creditor for investment in a project in Ghaziabad, assuring a refund with 24% interest within one year. The Financial Creditor invested ₹1,80,00,000 in three tranches in December 2014 and January 2015. The Corporate Debtor failed to make progress on the project, and no construction work started. The Financial Creditor requested a refund with interest. The amount infused by the Financial Creditor was reflected in the Corporate Debtor's audited balance sheet for 2017. The date of default was 2017-03-31. The Financial

…

## Issues and analysis

### Issue 1: Whether the application for initiating CIRP was filed within the limitation period as per the …

**Ratio:** As per the Limitation Act, filing an application under Section 7 of IBC is to be within

…

**Reasoning:** The Tribunal found that the date of default was 2017-03-31, and the amended application

…

**Interpretation:** The Limitation Act prescribes a time limit for filing legal proceedings. In the

…

**Application:** The Tribunal applied the three-year limitation period to the facts of the case

…

## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/s Neon Vincom…
- **Respondents:** M/S COLORCITY…

## Timeline

- **2014-12-20 — First Tranche I…**: Operational Creditor invested…
- **2014-12-25 — Second Tranche…**: Operational Creditor invested…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/colorcity-homes-pvt-ltd-cp-no-ib-04-ald-2020-bc906429