# In the matter of H L Buildwell Pvt. Ltd. IB-321-(ND)-2021

> NCLT judgment dated 2022-02-15. Citation: TCN-2022-NCLT-04137. The case involves an application filed by Shivani Gupta, a financial creditor, under Section 7…

- **Court:** NCLT
- **Order date:** 15 Feb 2022
- **Citation:** TCN-2022-NCLT-04137
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/h-l-buildwell-pvt-ltd-ib-321-nd-2021-f8307ed1

## Summary

### Background

The case involves an application filed by Shivani Gupta, a financial creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s H L Buildwell Pvt. Ltd. The application is based on the alleged default by the respondent in settling an amount of Rs. 14,60,00,000/-. The financial creditor and corporate debtor entered into agreements in May 2018 for the purchase of units developed by the corporate debtor. The financial creditor transferred Rs. 14,19,07,020.00 to the corporate debtor during 2017 and 2018. Due to market downturn, the corporate debtor could not fulfill the promise to hand over possession of the units. Subsequently, another agreement was entered into in November 2018, and the

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## Facts

Shivani Gupta, the financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s H L Buildwell Pvt. Ltd., the corporate debtor. The claim is based on a default of Rs. 14,60,00,000/-. Agreements were entered into in May 2018 for the purchase of units in a project called "H L Heights." The financial creditor transferred Rs. 14,19,07,020.00 to the corporate debtor during 2017 and 2018. Due to a market downturn, the corporate debtor failed to deliver possession of the units. In November 2018, another agreement was made, and the corporate debtor mortgaged its restaurant. In November 2019, the parties agreed to treat the outstanding amount as a loan, with a maturity amount of Rs. 18,50,00,000.00

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The Adjudicating Authority is not required to consider the question of dispute between

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**Reasoning:** The tribunal found that the agreements executed between the Financial Creditor and the

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate CIRP if a default

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**Application:** The agreements between Shivani Gupta and H L Buildwell Pvt. Ltd. established a

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** SHIVANI…
- **Respondents:** M/s H L Buildwell…

## Timeline

- **2018-05-04 — Agreement…**: Applicant entered into agreement with…
- **2018-05-18 — Agreement…**: Applicant entered into agreement with…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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