# In the matter of Jaipuria Buildcon Private Limited CP- IB-48(PB)-2020

> NCLT judgment dated 2022-06-02. Citation: TCN-2022-NCLT-02466. This case involves a joint application filed by 22 financial creditors/home buyers under…

- **Court:** NCLT
- **Order date:** 2 Jun 2022
- **Citation:** TCN-2022-NCLT-02466
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaipuria-buildcon-private-limited-cp-ib-48pb-2020-0dbb9159

## Summary

### Background

This case involves a joint application filed by 22 financial creditors/home buyers under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Jaipuria Buildcon Private Limited, the Corporate Debtor. The financial creditors had booked apartments in the Corporate Debtor's 'Jaipuria Apartments' project in 2006 and 2013, with possession promised between December 2009 and March 2014. Despite receiving Rs. 5,46,69,392.00 towards part purchase consideration, the Corporate Debtor failed to complete construction or offer possession even after 13 years.

## Facts

M/s. Jaipuria Buildcon Private Limited (Corporate Debtor) launched a residential project named 'Jaipuria Apartments'. Twenty-two financial creditors/home buyers filed a joint application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against the Corporate Debtor. The financial creditors had booked apartments in 2006 and 2013, with possession promised between December 2009 and March 2014. They paid Rs. 5,46,69,392.00 towards part purchase consideration. The Corporate Debtor failed to complete construction or offer possession after 13 years. The Corporate Debtor did not respond to multiple notices. The project consists of two towers with a total of 195 flats. Tower A has 105 flats, and Tower B has 90 flats. There are 160 allottees. The

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## Issues and analysis

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

**Ratio:** The principle of continuing cause of action applies when there is a continuous breach of

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**Reasoning:** The Adjudicating Authority reasoned that the Corporate Debtor's failure to hand over

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**Interpretation:** The interpretation of the law is that the limitation period for initiating CIRP

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**Application:** In this case, the Corporate Debtor promised to deliver possession of the units

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Pallavi Gupta &…
- **Respondents:** Jaipuria Buildcon…; M/s. Jaipuria…

## Timeline

- **2005-09-22 — Incorporation of…**: Jaipuria Buildcon Private…
- **2006-01-01 — Booking of Ap…**: Financial Creditors booked apartments in the project developed by the Corporate Debtor in…

## 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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