# In the matter of Rudra Buildwell Projects Pvt. Ltd.

> NCLT judgment dated 2024-03-11. Citation: TCN-2024-NCLT-02118. The case involves an application (I.A. 5045/2023) filed for the dismissal of a Company Petition…

- **Court:** NCLT
- **Order date:** 11 Mar 2024
- **Citation:** TCN-2024-NCLT-02118
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rudra-buildwell-projects-pvt-ltd-1579539d

## Summary

### Background

The case involves an application (I.A. 5045/2023) filed for the dismissal of a Company Petition (CP (IB) – 888/(PB)/2022) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The main petition was filed by homebuyers/financial creditors (Neeraj Kumar Dubey & Ors) against Rudra Buildwell Projects Pvt. Ltd., seeking initiation of corporate insolvency resolution process. The application for dismissal was filed by Rudra Buildwell Projects Pvt. Ltd., primarily arguing that the financial creditors did not meet the mandatory threshold requirement under Section 7(1) of the IBC, as some allottees had already withdrawn from the project and obtained Recovery Certificates (RCs) from UPRERA.

## Facts

Neeraj Kumar Dubey & Ors, acting as financial creditors and homebuyers of the 'Rudra Palace Heights' project, filed a Company Petition (CP (IB) – 888/(PB)/2022) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate corporate insolvency resolution process (CIRP) against Rudra Buildwell Projects Pvt. Ltd. Rudra Buildwell Projects Pvt. Ltd. filed an application (I.A. 5045/2023) seeking dismissal of the petition. The grounds for dismissal included allegations that the financial creditors were guilty of concealment and suppression, forum shopping, and abuse of process. The corporate debtor argued that some of the allottees had already withdrawn from the project and approached UPRERA for cancellation of their allotments, obtaining

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## Issues and analysis

### Issue 1: Whether the allottees are barred to file application under section 7 of IBC, if they have already …

**Ratio:** The doctrine of election suggests that when two remedies are available for the same

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**Reasoning:** The court reasoned that IBC proceedings are independent and operate in completely

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**Interpretation:** The court interpreted that approaching RERA for remedies does not automatically

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**Application:** The court applied this reasoning to the present case, stating that the

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## Parties

- **Judges:** MAHENDRA KHANDELWA…; RAHUL BHA…
- **Appellants:** Neeraj Kuma…
- **Respondents:** Rudra Buildwell…

## Timeline

- **2022-10-20 — Filing of Company…**: The captioned Petition…
- **2024-03-11 — Order Pron…**: Order Pronounced on:…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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