# In the matter of Morpheus Prodevelopers Private Limited

> NCLT judgment dated 2024-11-19. Citation: TCN-2024-NCLT-00204. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 19 Nov 2024
- **Citation:** TCN-2024-NCLT-00204
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/morpheus-prodevelopers-private-limited-d3b2ba53

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Mr. Shailendra Kumar Singh and 39 other homebuyers against M/s Morpheus Prodevelopers Private Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was incorporated on 13.08.2009 and is engaged in the real estate and construction business. In 2019, the Corporate Debtor launched a residential project called Morpheus Bluebell, comprising three multistoried residential towers. The homebuyers, after paying an initial amount, were assured of a Builder Buyer Agreement (BBA) within 45 days. However, a legal dispute over land acquisition arose, and the execution of the BBA was withheld until 2014. Allotment-cum-Builder-Buyer

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## Facts

Mr. Shailendra Kumar Singh and 39 other homebuyers filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s Morpheus Prodevelopers Private Limited ('Corporate Debtor'). The Corporate Debtor, incorporated on 13.08.2009, is in the real estate business. In 2019, it launched 'Morpheus Bluebell', a residential project with three towers. Homebuyers paid initial amounts, expecting Builder Buyer Agreements (BBA) within 45 days. A land acquisition dispute delayed BBA execution until 2014. Allotment-cum-BBA were issued in 2014, but the Corporate Debtor failed to deliver flats by June 2017 (36 months post-BBA), a key default. The project was registered under RERA on 15.08.2017, with a

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## Issues and analysis

### Issue 1: Whether the petition filed by the homebuyers is maintainable under Section 7 of the Insolvency and …

**Ratio:** Section 7 of the IBC stipulates that for financial creditors who are allottees under a

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**Reasoning:** The court considered the number of homebuyers filing the petition (40) and the total

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**Interpretation:** The court interpreted Section 7 of the IBC to ensure that the threshold

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**Application:** The court applied the ratio to the specific facts of the case, noting that the

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Shailendra Kumar…
- **Respondents:** Morpheus Prodevelo…; M/s Morpheus…

## Timeline

- **2009-08-13 — Incorporation of…**: M/s Morpheus Prodevelopers Private Limited was…
- **2019-01-01 — Launch of Morpheus…**: The Corporate Debtor introduced a residential project called Morpheus Bluebell,…

## 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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