# In the matter of Dreamvalley Projects Private Limited

> NCLT judgment dated 2024-08-22. Citation: TCN-2024-NCLT-00762. The case involves an application filed by Sanghi Steel Udyog Private Limited and Bijay Kumar…

- **Court:** NCLT
- **Order date:** 22 Aug 2024
- **Citation:** TCN-2024-NCLT-00762
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/dreamvalley-projects-private-limited-1a0e3287

## Summary

### Background

The case involves an application filed by Sanghi Steel Udyog Private Limited and Bijay Kumar Poddar against Dream Valley Projects Private Limited and others, including Pixel Consultancy Private Limited. The applicants sought to set aside a CIRP order dated 18th July 2023, initiated by Pixel Consultancy against Dream Valley Projects. The applicants alleged collusion between Pixel Consultancy and Dream Valley to deny rightful dues. The applicants were previously restrained by the Bombay High Court from initiating Section 7 proceedings against the corporate debtor. The Resolution Professional sought approval of a resolution plan approved by the Committee of Creditors (CoC).

## Facts

Sanghi Steel Udyog Private Limited and Bijay Kumar Poddar filed an application (C.P. (I.B.) No. 220/(KB)2022) against Dream Valley Projects Private Limited and others, seeking to set aside the CIRP order dated 18th July 2023. Sanghi Steel had previously extended a loan of Rs. 6.48 crores to Dream Valley. When Dream Valley defaulted, Sanghi Steel attempted to initiate Section 7 proceedings but was restrained by the Bombay High Court. Subsequently, Pixel Consultancy Private Limited, another financial creditor, initiated CIRP against Dream Valley, which was admitted by the Tribunal. Sanghi Steel alleged collusion between Pixel Consultancy and Dream Valley, citing common directors, shareholders, and registered offices. The Resolution Professional made paper publication

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## Issues and analysis

### Issue 1: Whether the CIRP order dated 18th July 2023 should be set aside due to alleged collusion between …

**Ratio:** The Tribunal has the power to set aside a CIRP order if it finds evidence of collusion or

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**Reasoning:** The Tribunal considered the allegations of common directors, shareholders, and registered

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**Interpretation:** The Tribunal interpreted the evidence as not being sufficient to establish

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**Application:** The Tribunal did not find sufficient grounds to set aside the CIRP order, as

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Sanghi Steel…
- **Respondents:** Dreamvalley…

## Timeline

- **2020-02-06 — Demand for Outstanding…**: The applicant demanded Rs. 6,09,70,351/- from…
- **2020-10-23 — High Court App…**: Respondents filed an application…

## 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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