# In the matter of Earth Towne Infrastructures Private Limited

> NCLT judgment dated 2023-10-31. Citation: TCN-2023-NCLT-00941. The case involves an application filed by Mr. Satyabrata Mitra and 145 other home buyers under…

- **Court:** NCLT
- **Order date:** 31 Oct 2023
- **Citation:** TCN-2023-NCLT-00941
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/earth-towne-infrastructures-private-limited-5b7bc9c3

## Summary

### Background

The case involves an application filed by Mr. Satyabrata Mitra and 145 other home buyers under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Earth Towne Infrastructure Private Limited ('Corporate Debtor'). The applicants claim that the Corporate Debtor defaulted on a financial debt amounting to 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

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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, to initiate Corporate Insolvency Resolution Process (CIRP) against Earth Towne Infrastructure Private Limited ('Corporate Debtor'). The applicants claimed a default on a financial debt of Rs. 28,64,48,786. In 2010, the Greater Noida Industrial Development Authority (GNIDA) allotted land to a consortium including Earth Infrastructure Limited (EIL). Earth Towne Infrastructure was incorporated as a special purpose vehicle by the consortium. A development agreement was entered into between Earth Towne and EIL, with EIL responsible for developing the project land. Homebuyers, including the applicants, entered into agreements with the

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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 only be initiated against a company incorporated and registered under the

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**Reasoning:** The Adjudicating Authority reasoned that the legal existence of the Corporate Debtor had

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**Interpretation:** The interpretation of the Companies Act, 2013, and the Insolvency and

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**Application:** In this case, the Corporate Debtor's name had been struck off from the register

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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 was issued to the consortium including…
- **2010-03-19 — Allotment…**: Allotment Letter No. dated 19.03.2010 was issued to the consortium including Earth…

## 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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