# In the matter of GRJ Distributors and Developers Pvt. Ltd. IA-1644-2023 in CP (IB) – 477(ND)-2021

> NCLT judgment dated 2023-06-14. Citation: TCN-2023-NCLT-02944. This case involves an application (IA-1644/2023) filed by allottees in the real estate project…

- **Court:** NCLT
- **Order date:** 14 Jun 2023
- **Citation:** TCN-2023-NCLT-02944
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/grj-distributors-and-developers-pvt-ltd-ia-1644-2023-in-cp-ib-477nd-2021-dbe8e30f

## Summary

### Background

This case involves an application (IA-1644/2023) filed by allottees in the real estate project 'Avalon Rosewood' of M/s. GRJ Distributors and Developers Private Limited ('Corporate Debtor') before the National Company Law Tribunal (NCLT) under Rule 11 of the National Company Law Tribunal Rules, 2016. The applicants sought clarification on whether the Corporate Insolvency Resolution Process (CIRP) and the consequent moratorium imposed by the NCLT's order dated 16.02.2023 in Company Petition (IB) No. 477/ND/2021 applied only to the 'Avalon Rosewood' project or to the Corporate Debtor as a whole. The initial CIRP was initiated based on an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 by homebuyers of the 'Avalon Rosewood' project, and the

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## Facts

M/s. GRJ Distributors and Developers Private Limited is the Corporate Debtor. An application was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 by homebuyers of the 'Avalon Rosewood' project, which is a real estate project of the Corporate Debtor. The Corporate Debtor admitted the liability. The NCLT initiated CIRP against the Corporate Debtor vide order dated 16.02.2023. The Financial Creditor proposed Mr. Piyush Garg as the Resolution Professional. An application (IA-1644/2023) was filed by allottees seeking clarification on whether the CIRP and moratorium applied only to the 'Avalon Rosewood' project or to the Corporate Debtor as a whole. The initial order declared a moratorium against the Corporate Debtor. The key fact is the ambiguity in the

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) and the consequent moratorium imposed by …

**Ratio:** The legal principle is that the scope of the CIRP and moratorium should be clearly

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**Reasoning:** The Tribunal reasoned that the initial order contained ambiguity, with Para-6 suggesting

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**Interpretation:** The interpretation of the legal issue involves determining the extent to which

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**Application:** The ratio and reasoning were applied to the specific facts by clarifying that

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Alka Bhat…
- **Respondents:** M/s. GRJ DISTRIBUT…; Piyush…
- **Advocates:** Honey S…; Piyush S…; +1 more

## Timeline

- **2023-03-20 — Application…**: IA-1644/2023 filed by allottees in the real estate project of M/s. GRJ Distributors and…
- **2023-02-16 — Initial…**: Tribunal passed an order initiating CIRP against the Corporate Debtor based on an…

## 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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