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

> NCLT judgment dated 2022-06-02. Citation: TCN-2022-NCLT-02477. This is a joint application filed by 22 financial creditors/home buyers under Section 7 of the…

- **Court:** NCLT
- **Order date:** 2 Jun 2022
- **Citation:** TCN-2022-NCLT-02477
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaipuria-buildcon-private-limited-cp-ib-48pb-2020-e352eeee

## Summary

### Background

This is a joint application filed by 22 financial creditors/home buyers under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against Jaipuria Buildcon Private Limited. The financial creditors had booked apartments in a project developed by the corporate debtor in 2006 and 2013, with possession proposed between December 2009 and March 2014. They paid Rs. 5,46,69,392.00 towards the purchase consideration. Despite a lapse of 13 years, the corporate debtor has neither completed construction nor offered possession of the flats.

## Facts

Jaipuria Buildcon Private Limited (Corporate Debtor) undertook 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 project consists of two towers with a total of 195 flats. The financial creditors booked apartments in 2006 and 2013 and paid Rs. 5,46,69,392.00 towards the purchase consideration. The possession was proposed to be delivered between December 2009 and March 2014. However, after 13 years, the Corporate Debtor failed to complete the construction or offer possession. A demand notice was issued to the Corporate Debtor, but it was returned undelivered. The Corporate Debtor did not

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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 recurring 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 Section 22 of the Limitation Act, 1963, in conjunction

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**Application:** In this case, the Corporate Debtor's failure to deliver possession of the

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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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