# In the matter of Shreepati Build Infra Investment Limited

> NCLT judgment dated 2023-07-28. Citation: TCN-2023-NCLT-02286. The case involves an application (IA/739/2022) filed in connection with a company petition…

- **Court:** NCLT
- **Order date:** 28 Jul 2023
- **Citation:** TCN-2023-NCLT-02286
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shreepati-build-infra-investment-limited-a3f860d7

## Summary

### Background

The case involves an application (IA/739/2022) filed in connection with a company petition (C.P.(IB)-4149(MB)/2018) under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016. The initial company petition was filed by Abhigyan Developers Private Limited against Shreepati Build Infra Investment Limited, seeking to initiate CIRP. The NCLAT had previously set aside the admission order and remanded the case back to the Adjudicating Authority to consider the objection of maintainability under the third proviso of Section 7(1) of the IBC. The financial creditor and the corporate debtor had entered into an agreement for the purchase of flats, but due to lack of necessary permissions, the construction did not commence, and the amount was converted into a loan

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## Facts

Abhigyan Developers Private Limited (Financial Creditor) filed a company petition against Shreepati Build Infra Investment Limited (Corporate Debtor) to initiate CIRP under Section 7 of the IBC. The Financial Creditor and Corporate Debtor entered into an agreement on 15.02.2011 for the purchase of flats for Rs. 3,50,00,000/-. The Corporate Debtor could not commence construction due to lack of permissions, and the amount was converted into a loan account. Shreepati Build Infra Investment Ltd. issued a letter on 31.03.2015 stating that if it is unable to obtain requisite permission from the appropriate authorities, the entire sum of Rs. 3,50,00,000/- shall be repaid along with 12% cumulative interest per annum. The Respondent confirmed conversion of payment made towards

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## Issues and analysis

### Issue 1: Whether the application for initiating corporate insolvency resolution process against the …

**Ratio:** The third proviso to Section 7(1) of the IBC, as amended, mandates that applications by

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**Reasoning:** The court reasoned that the amendment in Section 5(7) read with Section 5(8)(f) of the

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**Interpretation:** The interpretation of Section 5(7) and Section 5(8)(f) of the IBC, along with

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**Application:** In this case, the application was filed by a single allottee. Since the

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## Parties

- **Judges:** Shyam Babu…; Kuldip Kumar…
- **Respondents:** Shreepati Build…; Abhiyan Developers…

## Timeline

- **2011-02-15 — Agreement for Purchase…**: Financial Creditor and Corporate Debtor entered into an agreement for the purchase of…
- **2012-04-01 — Letter Confirming…**: Corporate Debtor issued a letter…

## 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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