# In the matter of Samiah International Builders Limited (IB)-945(ND)-2019

> NCLT judgment dated 2022-09-20. Citation: TCN-2022-NCLT-01006. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Sept 2022
- **Citation:** TCN-2022-NCLT-01006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/samiah-international-builders-limited-ib-945nd-2019-4d92f9a4

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Habib Sheikh and others, who are the 'Applicants/Financial Creditors', seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Samiah International Builders Limited, the 'Respondent'. The applicants had booked flats/units in the "Green View Apartment" project being developed by the respondent. The respondent is a company incorporated on 19.09.2003 under the erstwhile Companies Act, 1956.

## Facts

Habib Sheikh and other applicants, claiming to be financial creditors, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against Samiah International Builders Limited. The applicants had booked flats/units in the "Green View Apartment" project developed by the respondent. Payments were made to Arcmate Samiah Consortium, a registered partnership firm, and not directly to the respondent. The respondent argued there was no privity of contract. The total number of units in the project is 406, with 344 units sold. The court noted that most applicants jointly purchased their units. A representative of Arcmate Samiah Consortium sent a letter stating there were no funds for completion of the project. The applicants

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** The proviso to Section 7(1) of the IBC, 2016 prescribes a threshold limit for the number

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**Reasoning:** The court observed that the present application has been filed by less than 100

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**Interpretation:** The interpretation of Section 7(1) of IBC, 2016 requires the application to be

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**Application:** The court determined that the application was filed by only 10 allottees, which

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## Parties

- **Judges:** Sh. Dharminder…; SH. L. N.…
- **Appellants:** Habib S…
- **Respondents:** Samiah Internation…

## Timeline

- **2003-09-19 — Company Incor…**: Samiah International Builders Limited…
- **2013-06-18 — Partnership Deed…**: Arcmate Samiah Consortium…

## 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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