# In the matter of Tusiani Constructions and Developers Pvt. Ltd. (IB)-1012(PB)-2020

> NCLT judgment dated 2022-10-07. Citation: TCN-2022-NCLT-00823. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 7 Oct 2022
- **Citation:** TCN-2022-NCLT-00823
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tusiani-constructions-and-developers-pvt-ltd-ib-1012pb-2020-3742458b

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Rajiv Garg (Financial Creditor) against Tulsaini Constructions and Developers Pvt. Ltd. (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Financial Creditor had extended a loan of Rs. 1,00,00,000 to the Corporate Debtor, who was engaged in developing integrated townships and housing complexes. The agreement was in the nature of an investment in the Group Housing Project "Tulsiani Golf view Apartment," with the Corporate Debtor agreeing to allot two flats to the Financial Creditor. A settlement agreement was reached on 25.04.2018, but the Corporate Debtor failed to adhere to its terms. The Financial Creditor then approached

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## Facts

Rajiv Garg (Financial Creditor) extended a loan of Rs. 1,00,00,000 to Tulsaini Constructions and Developers Pvt. Ltd. (Corporate Debtor) for investment in the "Tulsiani Golf view Apartment" project, with an agreement for allotment of two flats. A buyback clause existed, requiring the Corporate Debtor to buy back the allotted flats by 06.12.2014 for Rs. 1,30,00,000. The loan was reconstituted multiple times. A settlement agreement was reached on 25.04.2018, acknowledging a liability of Rs. 1,10,00,000, including litigation costs. The Corporate Debtor paid Rs. 25,00,000 but failed to adhere to the remaining terms. A legal notice was sent on 24.09.2020, claiming Rs. 97,50,000 plus interest, totaling Rs. 1,30,33,919. The Corporate Debtor did not respond to the

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## Issues and analysis

### Issue 1: Whether the application filed by the Financial Creditor under Section 7 of the Insolvency and …

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

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**Reasoning:** The Tribunal considered the evidence presented by the Financial Creditor, including the

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**Interpretation:** Section 7 provides a mechanism for financial creditors to recover their dues

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**Application:** The Tribunal found that the Financial Creditor had provided sufficient evidence

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## Parties

- **Judges:** Ramalingam…; SH. AVINASH KUMAR…
- **Appellants:** Rajiv…
- **Respondents:** Tulsaini Construct…

## Timeline

- **2012-12-06 — Agreement…**: The petitioner (Mr. Rajiv Garg) had entered into articles of agreement dated 06.12.2012…
- **2014-12-06 — Buyback C…**: Clause VI of the agreement states that there is a buyback of the allotted flats on or…

## 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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