# In the matter of Spaze Towers Private Limited

> NCLT judgment dated 2024-10-21. Citation: TCN-2024-NCLT-00387. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 21 Oct 2024
- **Citation:** TCN-2024-NCLT-00387
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/spaze-towers-private-limited-877351ec

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Vivek Khanna and 36 other allottees (financial creditors) against Spaze Towers Private Limited (corporate debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The applicants claim that the corporate debtor defaulted on payments amounting to Rs. 23,37,64,560/- due to non-delivery of shops/non-payment of amounts paid by the applicants for units purchased in the 'Spaze Arrow' project. The corporate debtor is engaged in real estate and infrastructural development. The financial creditors booked shops in the project between 2012 and 2016. The corporate debtor failed to deliver possession of the shops within the stipulated 42 months from the date of

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## Facts

Mr. Vivek Khanna and 36 other allottees filed a Company Petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Spaze Towers Private Limited. The allottees, acting as financial creditors, claimed a default of Rs. 23,37,64,560/- due to the non-delivery of shops/non-payment of amounts for units purchased in the 'Spaze Arrow' project located in Sector 78, Gurugram. The allottees had booked shops between 2012 and 2016. The Corporate Debtor failed to deliver possession within 42 months of the agreement and did not obtain necessary approvals. The Respondent argued that the application was not maintainable as the threshold for filing by allottees under the second proviso to Section 7 of the Code was not met. The Respondent also claimed that the project

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## Issues and analysis

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

**Ratio:** The second proviso to Section 7(1) of the IBC states that for financial creditors who are

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**Reasoning:** The Adjudicating Authority considered the definition of 'financial debt' under Section

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**Interpretation:** The interpretation of Section 7(1) of the IBC, specifically the second proviso,

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**Application:** In this case, the Adjudicating Authority found that the application was

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** Vivek K…
- **Respondents:** Spaze Towers…; Spaze Towers Pvt.…

## Timeline

- **2012-01-01 — Booking of…**: Financial Creditors booked shops in the…
- **2016-01-01 — Booking of…**: Financial Creditors booked shops in the…

## 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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