# In the matter of Vibrant Buildwell Private Limited IA 3626-ND-2021 in Company Petition No. (IB)-983 (ND)-2020

> NCLT judgment dated 2022-02-22. Citation: TCN-2022-NCLT-04019. The case involves a petition filed by Dilwara Leasing and Investment Limited, a Non-Banking…

- **Court:** NCLT
- **Order date:** 22 Feb 2022
- **Citation:** TCN-2022-NCLT-04019
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vibrant-buildwell-private-limited-ia-3626-nd-2021-in-company-petition-no-ib-983-5593d4da

## Summary

### Background

The case involves a petition filed by Dilwara Leasing and Investment Limited, a Non-Banking Financial Company (NBFC), under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vibrant Buildwell Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditor claims that the corporate debtor defaulted on a loan. An IA 3626/ND/2021 was filed seeking rejection of the main IB petition, alleging inter-se disputes between shareholders and fraudulent invocation of the Code. The corporate debtor was operating as a quasi-partnership with two groups holding equal shares, one owned by the applicants and the other by the respondent (financial creditor). The financial creditor had provided margin money in the form of FDRs

…

## Facts

Dilwara Leasing and Investment Limited, a Non-Banking Financial Company (NBFC), filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Vibrant Buildwell Private Limited, seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The financial creditor claims that the corporate debtor defaulted on a loan. The corporate debtor entered into a Joint Venture Agreement with M/s Dhingra Developers Pvt. Ltd for development of a residential group housing on the plot of land situated in Village Sarai Aurangabad, Bahadurgarh, Haryana. The financial creditor provided margin money in the form of FDRs to the corporate debtor to obtain bank guarantees for renewing licenses for a project. The corporate debtor allegedly failed to pay

…

## Issues and analysis

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

**Ratio:** Section 7 of the IBC allows a financial creditor to initiate CIRP against a corporate

…

**Reasoning:** The court reasoned that the financial creditor had placed on record sufficient documents,

…

**Interpretation:** Section 7 is interpreted to mean that if a financial debt exists and a default

…

**Application:** The court applied this principle to the facts and found that the financial

…

## Parties

- **Judges:** DHARMINDER…; SUMITAPURKA…
- **Appellants:** Dilwara Leasing…
- **Respondents:** Vibrant Buildwell…

## Timeline

- **1992-09-03 — Incorporation of…**: The applicant Company, a Non - Banking Financial Company (NBFC), was incorporated under…
- **2004-11-01 — Incorporation of…**: The Respondent Company M/s. Vibrant…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vibrant-buildwell-private-limited-ia-3626-nd-2021-in-company-petition-no-ib-983-5593d4da