# In the matter of Eco Green Buildtech Private Limited

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02113. The case involves a petition filed by financial creditors (homebuyers) against Eco Green…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/eco-green-buildtech-private-limited-da5de768

## Summary

### Background

The case involves a petition filed by financial creditors (homebuyers) against Eco Green Buildtech Private Limited, the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioners claimed that the corporate debtor defaulted on delivering possession of flats/units allotted to them by April 15, 2019. SBICAP Ventures Limited, acting as the fund manager for SWAMIH Investment Fund I, intervened, seeking rejection of the CIRP petition, arguing that they had extended financial assistance to the corporate debtor, which was solvent and expected to complete the project by May 2025. The corporate debtor also proposed settlements with the petitioners, including refunds

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## Facts

A petition was filed under Section 7 of the IBC, 2016, by Suresh Kumar Verma & Ors. (financial creditors/homebuyers) against Eco Green Buildtech Private Limited (corporate debtor) for initiation of CIRP. The petitioners claimed that the corporate debtor defaulted on delivering possession of flats/units allotted to them by April 15, 2019. SBICAP Ventures Limited, as the fund manager of SWAMIH Investment Fund I, intervened, seeking rejection of the CIRP petition, arguing that they had extended financial assistance to the corporate debtor, which was solvent and expected to complete the project by May 2025. The corporate debtor proposed settlements with the petitioners, including refunds with interest or possession of the allotted units. The corporate debtor had

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be initiated against Eco Green …

**Ratio:** The ultimate purpose of the IBC is to facilitate the continuance and rehabilitation of a

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**Reasoning:** The court considered that the corporate debtor was willing to settle with the homebuyers

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**Interpretation:** The IBC aims to rescue and rehabilitate corporate debtors, and settlements are

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**Application:** The court disposed of the petition, giving an opportunity to the manager of

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** Sh. Suresh Kumar…
- **Respondents:** Eco Green…

## Timeline

- **2019-04-15 — Default…**: Alleged date of default by the Corporate Debtor for failing to deliver possession of…
- **2023-03-09 — Notice I…**: Notice of the petition was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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