# In the matter of Pushpanjali Realms and Infratech Limited

> NCLT judgment dated 2024-04-25. Citation: TCN-2024-NCLT-01591. The application was filed on 06.10.2023 by the Financial Creditors/Allottees under Section 7 of…

- **Court:** NCLT
- **Order date:** 25 Apr 2024
- **Citation:** TCN-2024-NCLT-01591
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pushpanjali-realms-and-infratech-limited-090c90d6

## Summary

### Background

The application was filed on 06.10.2023 by the Financial Creditors/Allottees under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016 in Form 1 against the Corporate Debtor, Pushpanjali Realms and Infratech Private Limited, for a total financial debt of Rs. 4,14,69,058. This debt comprises Rs. 3,51,43,272 paid towards the allotment of units in the "Orchid Park" project and Rs. 63,25,786 towards interest. The Corporate Debtor initiated the "Orchid Park" group housing project by purchasing land and entering into a collaboration agreement with the Mussoorie Dehradun Development Authority (MDDA). The project consists of 8 towers with various

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## Facts

The case involves Pushpanjali Realms and Infratech Limited, a real estate company, and several financial creditors/allottees who invested in the "Orchid Park" project. The allottees filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, claiming a total financial debt of Rs. 4,14,69,058, which includes the principal amount paid for the allotment of units and interest. The Corporate Debtor initiated the project by purchasing land and entering into a collaboration agreement with the MDDA. The project consisted of 8 towers with various apartment configurations. The Corporate Debtor persuaded individual allottees to apply for units through marketing and advertisements, leading to Allotment Agreements. The allottees complied with the

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the …

**Ratio:** Section 7(1) of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The court noted that the present application has been preferred by ten percent of the

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**Interpretation:** Section 7(1) allows a financial creditor to initiate CIRP when a default has

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**Application:** The court applied this ratio to the facts of the case and found that the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** SANDIP B…
- **Respondents:** PUSHPANJALI…

## Timeline

- **2015-01-01 — Payments from…**: Corporate Debtor has been receiving the majority of the payments from the project's…
- **2020-01-01 — Directors Res…**: Four out of six directors resigned in the year 2020, which left the company with 2…

## 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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