# In the matter of Earth Towne Infrastructure Private Limited

> NCLT judgment dated 2023-10-31. Citation: TCN-2023-NCLT-00974. 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-00974
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/earth-towne-infrastructure-private-limited-dd75a96e

## 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 Greater Noida Industrial Development Authority (GNIDA) had allotted land to a consortium including Earth Infrastructure Limited, which then incorporated Earth Towne Infrastructure as a special purpose vehicle. A development agreement was entered into between Earth Towne and Earth Infrastructure, with Earth Infrastructure to develop the project land. Homebuyers entered into agreements with the Corporate Debtor and Earth Infrastructure, disbursing substantial amounts. However, the applicants did

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## Facts

Mr. Satyabrata Mitra and 145 other home buyers jointly filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Earth Towne Infrastructure Private Limited ('Corporate Debtor'). The claim is based on a default of Rs. 28,64,48,786/-. GNIDA had allotted land to a consortium including Earth Infrastructure Limited, which then incorporated Earth Towne Infrastructure as a special purpose vehicle. A development agreement was entered into between Earth Towne and Earth Infrastructure, with Earth Infrastructure to develop the project land. Homebuyers entered into agreements with the Corporate Debtor and Earth Infrastructure, disbursing substantial amounts. The project completion date was 31.12.2021, but the applicants did not receive possession.

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## Issues and analysis

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

**Ratio:** The legal existence of a company ceases when its name is struck off from the register of

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**Reasoning:** The Adjudicating Authority reasoned that CIRP can only be initiated against a company

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**Interpretation:** The striking off of a company's name from the register of companies has

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**Application:** In this case, since Earth Towne Infrastructure Private Limited's name has been

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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…
- **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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