# In the matter of Earth Towne Infrastructure Private Limited

> NCLT judgment dated 2023-10-31. Citation: TCN-2023-NCLT-00961. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Oct 2023
- **Citation:** TCN-2023-NCLT-00961
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/earth-towne-infrastructure-private-limited-9ebee7ef

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by Mr. Satyabrata Mitra and 145 other home buyers against Earth Towne Infrastructure Private Limited ('Corporate Debtor') for defaulting on a financial debt of Rs. 28,64,48,786/-. The applicants, being homebuyers/allottees, had entered into agreements with the Corporate Debtor for allotment of apartments in a project. The Greater Noida Industrial Development Authority (GNIDA) had allotted land to a consortium including Earth Infrastructure Limited, which then incorporated Earth Towne Infrastructure Private Limited as a special purpose vehicle. A development agreement was entered into between Earth Towne Infrastructure and Earth Infrastructure Limited, where the latter was

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## Facts

Mr. Satyabrata Mitra and 145 other home buyers filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Earth Towne Infrastructure Private Limited ('Corporate Debtor') due to a default of Rs. 28,64,48,786/-. The applicants are homebuyers who entered into agreements with the Corporate Debtor for apartments in a project. The Greater Noida Industrial Development Authority (GNIDA) had allotted land to a consortium including Earth Infrastructure Limited, which then incorporated Earth Towne Infrastructure Private Limited as a special purpose vehicle. A development agreement was entered into between Earth Towne Infrastructure and Earth Infrastructure Limited, where the latter was to develop the project land. The applicants have not received

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## Issues and analysis

### Issue 1: Whether Corporate Insolvency Resolution Process (CIRP) can be initiated against a company whose …

**Ratio:** CIRP can be initiated against a company incorporated and registered under the provisions

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**Reasoning:** The court reasoned that due to the striking off of the company's name, the company's

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**Interpretation:** The interpretation is that a company must have a valid legal existence to be

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**Application:** In this case, because Earth Towne Infrastructure Private Limited's name was

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## Parties

- **Judges:** MANNI SANKARIAH…; BINOD KUMAR…
- **Appellants:** Satyabrata…
- **Respondents:** Earth Towne…; Earth Towne…

## Timeline

- **2010-03-04 — Reservation/Acceptance…**: Reservation/Acceptance Letter dated 04.03.2010 issued to the consortium including Earth…
- **2010-03-19 — Allotment…**: Allotment Letter No. dated…

## 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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