# In the matter of Point Developers Private Limited

> NCLT judgment dated 2024-07-26. Citation: TCN-2024-NCLT-00947. The case involves a petition filed by Rushabh Civil Contractors Private Limited, the Financial…

- **Court:** NCLT
- **Order date:** 26 Jul 2024
- **Citation:** TCN-2024-NCLT-00947
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/point-developers-private-limited-87e84495

## Summary

### Background

The case involves a petition filed by Rushabh Civil Contractors Private Limited, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Point Developers Private Limited, the Corporate Debtor. The Financial Creditor claims that the Corporate Debtor defaulted on loans and advances amounting to Rs. 9,56,83,836/-. The Corporate Debtor disputes the debt and the maintainability of the petition, arguing that the Petitioner is undergoing CIRP, lacks the authority to initiate proceedings, and that the petition is time-barred.

## Facts

Rushabh Civil Contractors Private Limited (Financial Creditor) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s. Point Developers Private Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor had defaulted on loans and advances amounting to Rs. 9,56,83,836/-, including principal and interest. The Corporate Debtor argued that the Petitioner was undergoing CIRP, lacked the authority to initiate proceedings, and that the petition was time-barred. The Corporate Debtor also contended that there was no written contract for the transaction and that the Petitioner had failed to substantiate how it falls within the ambit of a 'Financial Creditor'. The Corporate Debtor further argued that

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## Issues and analysis

### Issue 1: Whether the petition filed by Rushabh Civil Contractors Private Limited under Section 7 of the …

**Ratio:** The petition is maintainable if the applicant is a financial creditor, a debt exists, and

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**Reasoning:** The Tribunal found that the Financial Creditor's application was complete, the Corporate

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

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**Application:** The Tribunal determined that Rushabh Civil Contractors Private Limited met the

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## Parties

- **Judges:** SH. Justice…; SH. PRABHAT…
- **Appellants:** Rushabh Civil…
- **Respondents:** M/s. Point…

## Timeline

- **2016-01-01 — Corporate Debtor…**: The Corporate Debtor approached the Financial…
- **2016-12-16 — Financial Creditor…**: The Financial Creditor transferred Rs. 3,50,00,000/- to the Corporate Debtor as 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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